Exhibit 99.1




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COPT Defense Properties
Supplemental Information + Earnings Release - Unaudited
For the Period Ended 9/30/23
OVERVIEWSummary Description
supptoc3cdp.jpg
Equity Research Coverage
Selected Financial Summary Data
Selected Portfolio Data
FINANCIAL STATEMENTSConsolidated Balance Sheets
Consolidated Statements of Operations
Funds from Operations
Diluted Share + Unit Computations
Adjusted Funds from Operations
EBITDAre + Adjusted EBITDA
PORTFOLIO INFORMATIONProperties by Segment
Consolidated Real Estate Revenues + NOI by Segment
Cash NOI by Segment
NOI from Real Estate Operations + Occupancy by Property Grouping
Same Property Average Occupancy Rates by Segment
Same Property Period End Occupancy Rates by Segment
Same Property Real Estate Revenues + NOI by Segment
Same Property Cash NOI by Segment
Leasing
Lease Expiration Analysis
2024 Defense/IT Portfolio Quarterly Lease Expiration Analysis
Top 20 Tenants
INVESTING ACTIVITYProperty Dispositions
Summary of Development Projects
Development Placed in Service
Summary of Land Owned/Controlled
CAPITALIZATIONCapitalization Overview
Summary of Outstanding Debt
Debt Analysis
Consolidated Real Estate Joint Ventures
Unconsolidated Real Estate Joint Ventures
Please refer to the section entitled “Definitions” for definitions of non-GAAP measures
and other terms we use herein that may not be customary or commonly known.
RECONCILIATIONS + DEFINITIONSSupplementary Reconciliations of Non-GAAP Measures

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Definitions
EARNINGS RELEASE


COPT Defense Properties
Summary Description
THE COMPANY
COPT Defense Properties (the “Company” or “CDP”), an S&P MidCap 400 Company, is a self-managed real estate investment trust (“REIT”) focused on owning, operating and developing properties in locations proximate to, or sometimes containing, key U.S. Government (“USG”) defense installations and missions (which we refer to herein as our Defense/IT Portfolio). Our tenants include the USG and their defense contractors, who are primarily engaged in priority national security activities, and who generally require mission-critical and high security property enhancements. In September 2023, we changed our name from Corporate Office Properties Trust to COPT Defense Properties to better describe our investment strategy’s focus on locations serving our country’s priority defense activities. The ticker symbol under which our common shares are publicly traded on the New York Stock Exchange changed from “OFC” to “CDP”. As of September 30, 2023, our Defense/IT Portfolio of 188 properties, including 24 owned through unconsolidated joint ventures, encompassed 21.3 million square feet and was 97.0% leased.


MANAGEMENTStephen E. Budorick, President + CEOINVESTOR RELATIONSVenkat Kommineni, VP
Anthony Mifsud, EVP + CFO
443.285.5587 | venkat.kommineni@copt.com
Michelle Layne, Manager
443.285.5452 | michelle.layne@copt.com


CORPORATE CREDIT RATING
Fitch: BBB- Stable | Moody’s: Baa3 Stable | S&P: BBB- Stable


DISCLOSURE STATEMENT
This supplemental package contains forward-looking statements within the meaning of the Federal securities laws. Forward-looking statements can be identified by the use of words such as “may,” “will,” “should,” “could,” “believe,” “anticipate,” “expect,” “estimate,” “plan” or other comparable terminology.  Forward-looking statements are inherently subject to risks and uncertainties, many of which we cannot predict with accuracy and some of which we might not even anticipate.  Although we believe that the expectations, estimates and projections reflected in such forward-looking statements are based on reasonable assumptions at the time made, we can give no assurance that these expectations, estimates and projections will be achieved.  Future events and actual results may differ materially from those discussed in the forward-looking statements and we undertake no obligation to update or supplement any forward-looking statements.  The areas of risk that may affect these expectations, estimates and projections include, but are not limited to, those risks described in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2022.
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COPT Defense Properties
Equity Research Coverage
Firm Senior AnalystPhone Email
Bank of America Securities Camille Bonnel 416.369.2140 camille.bonnel@bofa.com
BTIGTom Catherwood212.738.6410tcatherwood@btig.com
Citigroup Global Markets Michael Griffin 212.816.5871 michael.a.griffin@citi.com
Evercore ISISteve Sakwa212.446.9462steve.sakwa@evercoreisi.com
Green Street  Dylan Burzinski 949.640.8780 dburzinski@greenstreet.com
Jefferies & Co. Peter Abramowitz 212.336.7241  pabramowitz@jefferies.com
JP Morgan Tony Paolone 212.622.6682 anthony.paolone@jpmorgan.com
Raymond James Bill Crow 727.567.2594 bill.crow@raymondjames.com
Truist Securities Michael Lewis 212.319.5659 michael.r.lewis@truist.com
Wedbush SecuritiesRichard Anderson212.938.9949richard.anderson@wedbush.com
Wells Fargo SecuritiesBlaine Heck443.263.6529blaine.heck@wellsfargo.com
 
With the exception of Green Street, the above-listed firms are those whose analysts publish research material on the Company and whose estimates of our FFO per share can be tracked through Refinitiv. Any opinions, estimates or forecasts the above analysts make regarding CDP’s future performance are their own and do not represent the views, estimates or forecasts of CDP’s management.
2

COPT Defense Properties
Selected Financial Summary Data
(in thousands, except per share data)
 PageThree Months EndedNine Months Ended
SUMMARY OF RESULTS Refer.9/30/236/30/233/31/2312/31/229/30/229/30/239/30/22
Net (loss) income7$(221,207)$31,642 $80,398 $52,087 $32,316 $(109,167)$126,735 
NOI from real estate operations13$96,494 $95,024 $93,903 $93,810 $91,096 $285,421 $268,494 
Same Property NOI17$87,176 $86,254 $84,452 $84,795 $84,485 $257,882 $249,518 
Same Property cash NOI18$85,940 $85,037 $83,194 $82,808 $82,228 $254,171 $239,422 
Adjusted EBITDA11$90,260 $89,044 $87,443 $87,787 $86,386 $266,747 $253,922 
FFO per NAREIT8$70,016 $70,033 $68,816 $70,282 $68,071 $208,865 $204,057 
Diluted AFFO avail. to common share and unit holders10$64,122 $46,003 $38,616 $26,122 $53,439 $148,741 $152,291 
Dividend per common shareN/A$0.285 $0.285 $0.285 $0.275 $0.275 $0.855 $0.825 
Per share - diluted:      
EPS9$(1.94)$0.27 $0.70 $0.45 $0.27 $(0.96)$1.08 
FFO - Nareit9$0.60 $0.60 $0.59 $0.60 $0.58 $1.79 $1.75 
FFO - as adjusted for comparability9$0.60 $0.60 $0.59 $0.60 $0.58 $1.79 $1.75 
Numerators for diluted per share amounts:
Diluted EPS7$(217,179)$30,138 $78,467 $50,290 $30,806 $(108,214)$122,107 
Diluted FFO available to common share and unit holders8$68,512 $68,323 $67,651 $68,696 $66,391 $204,486 $199,490 
Diluted FFO available to common share and unit holders, as adjusted for comparability8$68,593 $68,569 $67,651 $68,794 $66,595 $204,813 $200,171 

3

COPT Defense Properties
Selected Financial Summary Data (continued)
(in thousands, except ratios)
 PageThree Months EndedNine Months Ended
PAYOUT RATIOS AND CAPITALIZATIONRefer.9/30/236/30/233/31/2312/31/229/30/229/30/239/30/22
GAAP
Payout ratio:
Net incomeN/AN/A103.1%40.6%60.3%97.1%N/A74.3%
Capitalization and debt ratios:
Total assets6$4,239,257 $4,246,346 $4,177,992 $4,257,275 $4,269,329 
Total equity6$1,525,873 $1,776,695 $1,768,814 $1,721,455 $1,700,666 
Debt per balance sheet6$2,415,783 $2,176,174 $2,123,012 $2,231,794 $2,269,834 
Debt to assets3257.0%51.2%50.8%52.4%53.2%N/AN/A
Net income to interest expense ratio32N/A1.9x4.9x3.1x2.1xN/A2.9x
Debt to net income ratio32N/A17.2x6.6x10.7x17.6xN/AN/A
Non-GAAP
Payout ratios:      
Diluted FFON/A47.3%47.5%47.9%45.5%47.1%47.6%47.0%
Diluted FFO - as adjusted for comparabilityN/A47.3%47.3%47.9%45.4%46.9%47.5%46.8%
Diluted AFFON/A50.6%70.5%83.9%119.7%58.5%65.4%61.6%
Capitalization and debt ratios:     
Total Market Capitalization29$5,172,058 $4,914,516 $4,856,761 $5,214,423 $4,943,129 
Total Equity Market Capitalization29$2,726,295 $2,717,000 $2,711,499 $2,959,469 $2,650,311 
Net debt38$2,293,005 $2,234,633 $2,181,408 $2,294,261 $2,305,878 
Net debt to adjusted book3240.5%38.4%38.1%39.8%40.3%N/AN/A
Adjusted EBITDA fixed charge coverage ratio324.6x4.9x5.0x4.7x5.1x4.9x5.2x
Net debt to in-place adj. EBITDA ratio326.2x6.3x6.2x6.3x6.7xN/AN/A
Pro forma net debt to in-place adjusted EBITDA ratio (1)N/AN/AN/AN/A6.0xN/AN/AN/A
Net debt adjusted for fully-leased development to in-place adj. EBITDA ratio325.9x5.7x5.8x6.1x5.9xN/AN/A
Pro forma net debt adj. for fully-leased development to in-place adj. EBITDA ratio (1)N/AN/AN/AN/A5.7xN/AN/AN/A
(1)Includes, for the 12/31/22 period, adjustments associated with our sale on 1/10/23 of a 90% interest in three data center shell properties.
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COPT Defense Properties
Selected Portfolio Data (1)
 9/30/236/30/233/31/2312/31/229/30/22
# of Properties
Total Portfolio196194194194188
Consolidated Portfolio172170170173169
Defense/IT Portfolio188186186186180
Same Property180180180180180
% Occupied
Total Portfolio94.1 %93.4 %92.8 %92.7 %92.7 %
Consolidated Portfolio92.7 %91.9 %91.2 %91.4 %91.4 %
Defense/IT Portfolio95.9 %95.3 %94.4 %94.1 %93.9 %
Same Property93.4 %92.8 %92.1 %92.0 %92.2 %
% Leased
Total Portfolio95.1 %94.9 %95.0 %95.2 %94.9 %
Consolidated Portfolio94.0 %93.7 %93.9 %94.3 %94.0 %
Defense/IT Portfolio97.0 %96.8 %96.7 %96.7 %96.3 %
Same Property94.5 %94.4 %94.5 %94.7 %94.5 %
Square Feet (in thousands)
Total Portfolio23,47923,03523,02023,00622,085
Consolidated Portfolio19,18418,74018,72519,45818,903
Defense/IT Portfolio21,33920,89520,87820,86919,949
Same Property20,60920,60920,60920,60920,609
(1)Except for the Consolidated Portfolio, includes properties owned through unconsolidated real estate joint ventures (see page 34).

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COPT Defense Properties
Consolidated Balance Sheets
(in thousands)
 9/30/236/30/233/31/2312/31/229/30/22
Assets     
Properties, net:     
Operating properties, net$3,148,434 $3,272,670 $3,272,873 $3,258,899 $3,169,992 
Development and redevelopment in progress, including land (1)141,854 206,130 151,910 109,332 320,354 
Land held (1)177,909 193,435 189,292 188,167 201,065 
Total properties, net3,468,197 3,672,235 3,614,075 3,556,398 3,691,411 
Property - operating right-of-use assets 40,487 41,652 42,808 37,020 37,541 
Assets held for sale, net— — — 161,286 — 
Cash and cash equivalents204,238 14,273 15,199 12,337 12,643 
Investment in unconsolidated real estate joint ventures41,495 41,928 42,279 21,460 38,644 
Accounts receivable, net40,211 47,363 46,149 43,334 39,720 
Deferred rent receivable 142,041 136,382 130,153 125,147 124,146 
Lease incentives, net60,506 59,541 49,679 49,757 49,083 
Deferred leasing costs, net 68,033 69,218 68,930 69,339 68,122 
Investing receivables, net87,535 86,708 85,499 84,621 102,550 
Prepaid expenses and other assets, net86,514 77,046 83,221 96,576 105,469 
Total assets$4,239,257 $4,246,346 $4,177,992 $4,257,275 $4,269,329 
Liabilities and equity     
Liabilities:     
Debt $2,415,783 $2,176,174 $2,123,012 $2,231,794 $2,269,834 
Accounts payable and accrued expenses135,605 135,784 128,509 157,998 156,815 
Rents received in advance and security deposits32,063 32,021 34,653 30,016 29,056 
Dividends and distributions payable32,645 32,636 32,630 31,400 31,407 
Deferred revenue associated with operating leases24,590 9,199 9,022 11,004 9,382 
Property - operating lease liabilities32,940 33,923 34,896 28,759 29,088 
Other liabilities17,936 27,699 21,008 18,556 17,634 
Total liabilities2,691,562 2,447,436 2,383,730 2,509,527 2,543,216 
Redeemable noncontrolling interests21,822 22,215 25,448 26,293 25,447 
Equity:   
CDP’s shareholders’ equity:   
Common shares1,125 1,125 1,125 1,124 1,124 
Additional paid-in capital2,489,717 2,486,996 2,484,501 2,486,116 2,484,702 
Cumulative distributions in excess of net income(1,010,885)(762,617)(760,820)(807,508)(827,072)
Accumulated other comprehensive income 6,094 5,224 1,353 2,071 2,632 
Total CDP’s shareholders’ equity1,486,051 1,730,728 1,726,159 1,681,803 1,661,386 
Noncontrolling interests in subsidiaries:     
Common units in the Operating Partnership25,337 29,563 29,268 25,808 25,524 
Other consolidated entities14,485 16,404 13,387 13,844 13,756 
Total noncontrolling interests in subsidiaries39,822 45,967 42,655 39,652 39,280 
Total equity1,525,873 1,776,695 1,768,814 1,721,455 1,700,666 
Total liabilities, redeemable noncontrolling interests and equity$4,239,257 $4,246,346 $4,177,992 $4,257,275 $4,269,329 
(1)Refer to pages 26 and 28 for detail.


6

COPT Defense Properties
Consolidated Statements of Operations
(in thousands)
 Three Months EndedNine Months Ended
 9/30/236/30/233/31/2312/31/229/30/229/30/239/30/22
Revenues     
Lease revenue$155,268 $153,682 $150,560 $150,022 $146,481 $459,510 $430,147 
Other property revenue1,339 1,271 1,121 1,163 1,206 3,731 3,066 
Construction contract and other service revenues11,949 14,243 15,820 24,062 34,813 42,012 130,570 
Total revenues168,556 169,196 167,501 175,247 182,500 505,253 563,783 
Operating expenses     
Property operating expenses61,788 61,600 59,420 58,470 57,663 182,808 168,960 
Depreciation and amortization associated with real estate operations37,620 37,600 36,995 36,907 35,247 112,215 104,323 
Construction contract and other service expenses11,493 13,555 15,201 23,454 33,555 40,249 126,509 
Impairment losses252,797 — — — — 252,797 — 
General and administrative expenses7,582 7,287 7,996 7,766 6,558 22,865 19,695 
Leasing expenses2,280 2,345 1,999 2,235 2,340 6,624 6,102 
Business development expenses and land carry costs714 726 495 1,157 552 1,935 2,036 
Total operating expenses374,274 123,113 122,106 129,989 135,915 619,493 427,625 
Interest expense(17,798)(16,519)(16,442)(16,819)(15,123)(50,759)(44,355)
Interest and other income, net2,529 2,143 2,256 4,671 597 6,928 4,399 
Gain on sales of real estate— 14 49,378 19,238 16 49,392 12 
Loss on early extinguishment of debt— — — (267)— — (342)
(Loss) income from continuing operations before equity in (loss) income of unconsolidated entities and income taxes(220,987)31,721 80,587 52,081 32,075 (108,679)95,872 
Equity in (loss) income of unconsolidated entities(68)111 (64)229 308 (21)1,514 
Income tax expense(152)(190)(125)(223)(67)(467)(224)
(Loss) income from continuing operations(221,207)31,642 80,398 52,087 32,316 (109,167)97,162 
Discontinued operations— — — — — — 29,573 
Net (loss) income (221,207)31,642 80,398 52,087 32,316 (109,167)126,735 
Net loss (income) attributable to noncontrolling interests:     
Common units in the Operating Partnership3,691 (516)(1,293)(775)(476)1,882 (1,828)
Other consolidated entities1,329 (839)(326)(833)(919)164 (2,357)
Net (loss) income attributable to common shareholders$(216,187)$30,287 $78,779 $50,479 $30,921 $(107,121)$122,550 
Amount allocable to share-based compensation awards(992)(98)(248)(129)(75)(1,093)(334)
Redeemable noncontrolling interests— (51)(64)(60)(40)— (109)
Numerator for diluted EPS$(217,179)$30,138 $78,467 $50,290 $30,806 $(108,214)$122,107 
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COPT Defense Properties
Funds from Operations
(in thousands)
 Three Months EndedNine Months Ended
 9/30/236/30/233/31/2312/31/229/30/229/30/239/30/22
Net (loss) income $(221,207)$31,642 $80,398 $52,087 $32,316 $(109,167)$126,735 
Real estate-related depreciation and amortization37,620 37,600 36,995 36,907 35,247 112,215 104,323 
Impairment losses on real estate252,797 — — — — 252,797 — 
Gain on sales of real estate (1)— (14)(49,378)(19,238)(16)(49,392)(28,576)
Depreciation and amortization on unconsolidated real estate JVs (2)806 805 801 526 524 2,412 1,575 
FFO - per Nareit (3)70,016 70,033 68,816 70,282 68,071 208,865 204,057 
FFO allocable to other noncontrolling interests (4)(1,059)(1,239)(708)(1,227)(1,348)(3,006)(3,568)
Basic FFO allocable to share-based compensation awards(481)(480)(466)(360)(354)(1,427)(1,073)
Basic FFO available to common share and common unit holders (3)68,476 68,314 67,642 68,695 66,369 204,432 199,416 
Redeemable noncontrolling interests— (28)(30)(27)(5)(58)(7)
Diluted FFO adjustments allocable to share-based compensation awards36 37 39 28 27 112 81 
Diluted FFO available to common share and common unit holders - per Nareit (3)68,512 68,323 67,651 68,696 66,391 204,486 199,490 
Loss on early extinguishment of debt— — — 267 — — 342 
Gain on early extinguishment of debt on unconsolidated real estate JVs (2)— — — (168)— — — 
Executive transition costs82 248 — — 206 330 343 
Diluted FFO comparability adjustments allocable to share-based compensation awards(1)(2)— (1)(2)(3)(4)
Diluted FFO available to common share and common unit holders, as adjusted for comparability (3)$68,593 $68,569 $67,651 $68,794 $66,595 $204,813 $200,171 
(1)Refer to the section entitled “Supplementary Reconciliations of Non-GAAP Measures” for reconciliation.
(2)See page 34 for additional disclosure regarding our unconsolidated real estate JVs.
(3)Refer to the section entitled “Definitions” for a definition of this measure.
(4)Pertains to noncontrolling interests in consolidated real estate JVs reported on page 33.

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COPT Defense Properties
Diluted Share + Unit Computations
(in thousands, except per share data)

 Three Months EndedNine Months Ended
 9/30/236/30/233/31/2312/31/229/30/229/30/239/30/22
EPS Denominator:     
Weighted average common shares - basic112,196 112,188 112,127 112,096 112,093 112,170 112,066 
Dilutive effect of share-based compensation awards— 426 410 435 433 — 429 
Dilutive effect of redeemable noncontrolling interests— 62 91 102 105 — 121 
Weighted average common shares - diluted112,196 112,676 112,628 112,633 112,631 112,170 112,616 
Diluted EPS$(1.94)$0.27 $0.70 $0.45 $0.27 $(0.96)$1.08 
Weighted Average Shares for period ended:       
Common shares112,196 112,188 112,127 112,096 112,093 112,170 112,066 
Dilutive effect of share-based compensation awards429 426 410 435 433 422 429 
Common units1,520 1,514 1,489 1,476 1,477 1,508 1,446 
Redeemable noncontrolling interests— 62 91 102 105 51 121 
Denominator for diluted FFO per share and as adjusted for comparability114,145 114,190 114,117 114,109 114,108 114,151 114,062 
Weighted average common units(1,520)(1,514)(1,489)(1,476)(1,477)(1,508)(1,446)
Redeemable noncontrolling interests— — — — — (51)— 
Dilutive effect of additional share-based compensation awards(429)— — — — (422)— 
Denominator for diluted EPS112,196 112,676 112,628 112,633 112,631 112,170 112,616 
Diluted FFO per share - Nareit (1)$0.60 $0.60 $0.59 $0.60 $0.58 $1.79 $1.75 
Diluted FFO per share - as adjusted for comparability (1)$0.60 $0.60 $0.59 $0.60 $0.58 $1.79 $1.75 
(1)Refer to the section entitled “Definitions” for a definition of this measure.
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COPT Defense Properties
Adjusted Funds from Operations
(in thousands)
 Three Months EndedNine Months Ended
 9/30/236/30/233/31/2312/31/229/30/229/30/239/30/22
Diluted FFO available to common share and common unit holders, as adjusted for comparability (1)$68,593 $68,569 $67,651 $68,794 $66,595 $204,813 $200,171 
Straight line rent adjustments and lease incentive amortization12,882 (3,161)(3,516)(3,043)605 6,205 (5,782)
Amortization of intangibles and other assets included in NOI26 17 (19)15 50 24 (273)
Share-based compensation, net of amounts capitalized2,280 2,213 1,733 2,247 2,188 6,226 6,453 
Amortization of deferred financing costs639 628 632 619 540 1,899 1,678 
Amortization of net debt discounts, net of amounts capitalized750 622 618 615 612 1,990 1,825 
Replacement capital expenditures (1)(21,122)(22,664)(28,210)(43,283)(17,528)(71,996)(52,603)
Other74 (221)(273)158 377 (420)822 
Diluted AFFO available to common share and common unit holders (“diluted AFFO”) (1)$64,122 $46,003 $38,616 $26,122 $53,439 $148,741 $152,291 
Replacement capital expenditures (1)     
Tenant improvements and incentives$14,457 $32,619 $19,986 $33,439 $8,848 $67,062 $29,513 
Building improvements6,307 2,766 2,141 8,468 7,477 11,214 21,060 
Leasing costs1,902 3,542 1,750 4,389 3,073 7,194 7,091 
Net (exclusions from) additions to tenant improvements and incentives(813)(16,007)4,839 (75)(57)(11,981)2,225 
Excluded building improvements and leasing costs(731)(256)(506)(2,938)(1,813)(1,493)(7,286)
Replacement capital expenditures$21,122 $22,664 $28,210 $43,283 $17,528 $71,996 $52,603 
(1)Refer to the section entitled “Definitions” for a definition of this measure.
10

COPT Defense Properties
EBITDAre + Adjusted EBITDA
(in thousands)
 Three Months EndedNine Months Ended
 9/30/236/30/233/31/2312/31/229/30/229/30/239/30/22
Net (loss) income $(221,207)$31,642 $80,398 $52,087 $32,316 $(109,167)$126,735 
Interest expense17,798 16,519 16,442 16,819 15,123 50,759 44,355 
Income tax expense152 190 125 223 67 467 224 
Real estate-related depreciation and amortization37,620 37,600 36,995 36,907 35,247 112,215 104,323 
Other depreciation and amortization615 609 602 602 602 1,826 1,761 
Impairment losses on real estate252,797 — — — — 252,797 — 
Gain on sales of real estate (1)— (14)(49,378)(19,238)(16)(49,392)(28,576)
Adjustments from unconsolidated real estate JVs1,743 1,559 1,704 1,033 762 5,006 2,280 
EBITDAre (2)89,518 88,105 86,888 88,433 84,101 264,511 251,102 
Credit loss expense (recoveries)372 238 67 (1,331)1,693 677 1,602 
Business development expenses313 394 241 794 386 948 1,097 
Executive transition costs82 307 247 387 206 636 343 
Loss on early extinguishment of debt— — — 267 — — 342 
Gain on early extinguishment of debt on unconsolidated real estate JVs— — — (168)— — — 
Net gain on other investments(25)— — (595)— (25)(564)
Adjusted EBITDA (2)90,260 89,044 87,443 87,787 86,386 $266,747 $253,922 
Pro forma NOI adjustment for property changes within period1,647 56 (318)2,704 — 
Change in collectability of deferred rental revenue— 28 899 — 13 
In-place adjusted EBITDA (2)91,907 89,128 88,024 90,491 86,399 
Pro forma NOI adjustment from subsequent event transactions (3)N/AN/AN/A(2,903)N/A
Pro forma in-place adjusted EBITDA (2)$91,907 $89,128 $88,024 $87,588 $86,399 
(1)Refer to the section entitled “Supplementary Reconciliations of Non-GAAP Measures” for reconciliation.
(2)Refer to the section entitled “Definitions” for a definition of this measure.
(3)Includes, for the 12/31/22 period, NOI adjustment from our sale on 1/10/23 of a 90% interest in three data center shell properties.
11

COPT Defense Properties
Properties by Segment - 9/30/23
(square feet in thousands)
# of
Properties
Operational
Square Feet
% Occupied% Leased
Defense/IT Portfolio:
Fort Meade/Baltimore Washington (“BW”) Corridor:    
National Business Park33 4,106 98.7%99.4%
Howard County35 2,862 93.7%94.3%
Other23 1,725 93.9%95.1%
Total Fort Meade/BW Corridor91 8,693 96.1%96.9%
Northern Virginia (“NoVA”) Defense/IT 16 2,501 89.5%92.4%
Lackland AFB (San Antonio, Texas)1,062 100.0%100.0%
Navy Support22 1,273 86.8%89.7%
Redstone Arsenal (Huntsville, Alabama)22 2,300 95.8%98.0%
Data Center Shells:
Consolidated Properties1,215 100.0%100.0%
Unconsolidated JV Properties (1)24 4,295 100.0%100.0%
Total Defense/IT Portfolio188 21,339 95.9%97.0%
Other (2)2,140 75.4%75.9%
Total Portfolio196 23,479 94.1%95.1%
Consolidated Portfolio172 19,184 92.7%94.0%
(1)See page 34 for additional disclosure regarding our unconsolidated real estate JVs.
(2)Includes our reclassification in the quarter ended 9/30/23 of a portfolio of office properties located in the Greater Washington, DC/Baltimore region that we previously reported as a separate segment referred to as Regional Office.
chart-f2689576f8634fb5a76.jpgchart-0ac134984de44a1a863.jpg
(3)Refer to the section entitled “Definitions” for a definition of this measure.
12

COPT Defense Properties
Consolidated Real Estate Revenues + NOI by Segment
(in thousands)
 Three Months EndedNine Months Ended
 9/30/236/30/233/31/2312/31/229/30/229/30/239/30/22
Consolidated real estate revenues     
Defense/IT Portfolio:
Fort Meade/BW Corridor$73,350 $72,176 $69,777 $69,778 $69,209 $215,303 $204,012 
NoVA Defense/IT 20,333 19,841 19,829 18,695 18,611 60,003 55,290 
Lackland Air Force Base16,193 17,595 15,605 17,118 15,951 49,393 45,793 
Navy Support8,190 8,118 7,925 8,247 8,253 24,233 24,507 
Redstone Arsenal13,768 12,978 13,414 10,114 9,976 40,160 28,479 
Data Center Shells-Consolidated6,811 6,287 6,692 10,008 9,069 19,790 25,714 
Total Defense/IT Portfolio138,645 136,995 133,242 133,960 131,069 408,882 383,795 
Wholesale Data Center— — — — — — 1,980 
Other (2)17,962 17,958 18,439 17,225 16,618 54,359 49,418 
Consolidated real estate revenues (1)$156,607 $154,953 $151,681 $151,185 $147,687 $463,241 $435,193 
NOI from real estate operations (3)     
Defense/IT Portfolio:
Fort Meade/BW Corridor$48,134 $47,988 $45,257 $45,784 $44,759 $141,379 $130,279 
NoVA Defense/IT 12,433 12,158 12,257 11,862 11,835 36,848 35,488 
Lackland Air Force Base7,626 7,644 7,660 7,690 7,670 22,930 22,920 
Navy Support4,257 4,602 4,382 4,712 4,588 13,241 14,041 
Redstone Arsenal8,820 8,228 8,778 6,204 5,652 25,826 16,789 
Data Center Shells:
Consolidated properties6,133 5,544 6,098 8,951 7,953 17,775 22,399 
CDP’s share of unconsolidated real estate JVs1,675 1,671 1,642 1,095 1,072 4,988 3,232 
Total Defense/IT Portfolio89,078 87,835 86,074 86,298 83,529 262,987 245,148 
Wholesale Data Center— — — (4)— — 1,005 
Other (2)7,416 7,189 7,829 7,516 7,567 22,434 22,341 
NOI from real estate operations (1)$96,494 $95,024 $93,903 $93,810 $91,096 $285,421 $268,494 
(1)Refer to the section entitled “Supplementary Reconciliations of Non-GAAP Measures” for reconciliation.
(2)Includes our retrospective reclassification in the quarter ended 9/30/23 of a portfolio of office properties located in the Greater Washington, DC/Baltimore region that we previously reported as a separate segment referred to as Regional Office.
(3)Refer to the section entitled “Definitions” for a definition of this measure.
13

COPT Defense Properties
Cash NOI by Segment
(in thousands)
 Three Months EndedNine Months Ended
 9/30/236/30/233/31/2312/31/229/30/229/30/239/30/22
Cash NOI from real estate operations (1)     
Defense/IT Portfolio:
Fort Meade/BW Corridor$45,513 $45,727 $43,662 $45,106 $44,723 $134,902 $129,607 
NoVA Defense/IT12,765 12,642 11,423 10,274 10,197 36,830 30,607 
Lackland Air Force Base7,913 7,919 7,915 7,889 7,757 23,747 23,134 
Navy Support4,621 4,911 5,023 5,257 4,951 14,555 14,719 
Redstone Arsenal4,861 3,707 4,988 5,263 4,631 13,556 14,013 
Data Center Shells:
Consolidated properties4,904 4,918 5,379 6,960 7,020 15,201 19,016 
CDP’s share of unconsolidated real estate JVs1,396 1,385 1,351 1,012 985 4,132 2,955 
Total Defense/IT Portfolio81,973 81,209 79,741 81,761 80,264 242,923 234,051 
Wholesale Data Center— — — (4)— — 1,014 
Other (2)7,400 7,350 7,583 6,876 7,606 22,333 20,114 
Cash NOI from real estate operations (3)$89,373 $88,559 $87,324 $88,633 $87,870 $265,256 $255,179 
(1)Refer to the section entitled “Definitions” for a definition of this measure.
(2)Includes our retrospective reclassification in the quarter ended 9/30/23 of a portfolio of office properties located in the Greater Washington, DC/Baltimore region that we previously reported as a separate segment referred to as Regional Office.
(3)Refer to the section entitled “Supplementary Reconciliations of Non-GAAP Measures” for reconciliation.
chart-96a8766e755543e48b6.jpgchart-88dddaca0c754839963.jpg

14

COPT Defense Properties
NOI from Real Estate Operations + Occupancy by Property Grouping - 9/30/23
(dollars and square feet in thousands)
 As of Period EndNOI from Real Estate Operations (3)
# of
Properties
Operational Square Feet% Occupied (1)% Leased (1)Annualized
Rental Revenue (2)
% of Total
Annualized
Rental Revenue (2)
Property GroupingThree Months EndedNine Months Ended
Defense/IT Portfolio:
Same Property: (2)
Consolidated properties153 15,287 94.5%96.0%$511,359 80.7 %$78,867 $232,836 
Unconsolidated real estate JV 19 3,182 100.0%100.0%4,898 0.8 %1,078 3,227 
Total Same Property in Defense/IT Portfolio172 18,469 95.5%96.7%516,257 81.5 %79,945 236,063 
Properties Placed in Service (4)11 1,757 98.4%98.4%47,570 7.5 %8,537 24,820 
Other unconsolidated JV properties (5)1,113 100.0%100.0%1,818 0.3 %596 2,104 
Total Defense/IT Portfolio188 21,339 95.9%97.0%565,645 89.3 %89,078 262,987 
Other2,140 75.4%75.9%67,753 10.7 %7,416 22,434 
Total Portfolio 196 23,479 94.1%95.1%$633,398 100.0 %$96,494 $285,421 
Consolidated Portfolio172 19,184 92.7%94.0%$626,681 98.9 %$94,819 $280,433 
(1)Percentages calculated based on operational square feet.
(2)Refer to the section entitled “Definitions” for a definition of this measure.
(3)Refer to the section entitled “Supplementary Reconciliations of Non-GAAP Measures” for reconciliation.
(4)Newly developed or redeveloped properties placed in service that were not fully operational by 1/1/22.
(5)Includes data center shell properties in which we sold ownership interests and retained 10% interests through unconsolidated real estate JVs in 2023 and 2022. See page 34 for additional disclosure regarding our unconsolidated real estate JVs.


15

COPT Defense Properties
Same Property (1) Average Occupancy Rates by Segment 
(square feet in thousands)
 # of PropertiesOperational Square FeetThree Months EndedNine Months Ended
 9/30/236/30/233/31/2312/31/229/30/229/30/239/30/22
Defense/IT Portfolio:
Fort Meade/BW Corridor90 8,510 95.7 %94.7 %92.9 %92.5 %91.9 %94.4 %90.7 %
NoVA Defense/IT16 2,501 89.8 %89.9 %90.6 %89.9 %89.3 %90.1 %88.8 %
Lackland Air Force Base1,062 100.0 %100.0 %100.0 %100.0 %100.0 %100.0 %100.0 %
Navy Support21 1,244 87.2 %87.6 %88.9 %90.4 %91.3 %87.9 %91.8 %
Redstone Arsenal16 1,512 91.6 %87.8 %87.0 %87.6 %87.8 %88.8 %88.8 %
Data Center Shells:
Consolidated properties458 100.0 %100.0 %100.0 %100.0 %100.0 %100.0 %100.0 %
Unconsolidated JV properties19 3,182 100.0 %100.0 %100.0 %100.0 %100.0 %100.0 %100.0 %
Total Defense/IT Portfolio172 18,469 95.1 %94.4 %93.6 %93.5 %93.2 %94.4 %92.7 %
Other (2)2,140 75.2 %75.0 %78.6 %80.0 %80.7 %76.3 %80.2 %
Total Same Property180 20,609 93.0 %92.3 %92.1 %92.1 %91.9 %92.5 %91.4 %

Same Property (1) Period End Occupancy Rates by Segment 
(square feet in thousands)
# of PropertiesOperational Square Feet
 9/30/236/30/233/31/2312/31/229/30/22
Defense/IT Portfolio:
Fort Meade/BW Corridor90 8,510 96.0 %95.3 %93.3 %92.5 %92.2 %
NoVA Defense/IT16 2,501 89.5 %89.9 %90.7 %90.0 %89.9 %
Lackland Air Force Base1,062 100.0 %100.0 %100.0 %100.0 %100.0 %
Navy Support21 1,244 87.4 %87.4 %88.4 %89.7 %91.4 %
Redstone Arsenal16 1,512 94.7 %90.1 %86.7 %88.0 %88.1 %
Data Center Shells:
Consolidated properties458 100.0 %100.0 %100.0 %100.0 %100.0 %
Unconsolidated JV properties19 3,182 100.0 %100.0 %100.0 %100.0 %100.0 %
Total Defense/IT Portfolio172 18,469 95.5 %94.8 %93.8 %93.5 %93.5 %
Other (2)2,140 75.4 %74.9 %77.6 %78.8 %81.0 %
Total Same Property180 20,609 93.4 %92.8 %92.1 %92.0 %92.2 %
(1)Includes properties stably owned and 100% operational since at least 1/1/22.
(2)Includes our retrospective reclassification in the quarter ended 9/30/23 of a portfolio of office properties located in the Greater Washington, DC/Baltimore region that we previously reported as a separate segment referred to as Regional Office.
16

COPT Defense Properties
Same Property Real Estate Revenues + NOI by Segment
(in thousands)
 Three Months EndedNine Months Ended
 9/30/236/30/233/31/2312/31/229/30/229/30/239/30/22
Same Property real estate revenues     
Defense/IT Portfolio:
Fort Meade/BW Corridor$71,668 $70,510 $68,112 $68,673 $69,183 $210,290 $203,983 
NoVA Defense/IT20,333 19,840 19,829 18,695 18,611 60,002 55,290 
Lackland Air Force Base16,193 17,596 15,605 17,118 15,951 49,394 45,793 
Navy Support8,035 7,964 7,771 8,092 8,098 23,770 24,184 
Redstone Arsenal9,629 8,972 9,499 9,204 9,310 28,100 27,220 
Data Center Shells-Consolidated2,479 2,538 2,505 2,395 2,379 7,522 7,165 
Total Defense/IT Portfolio128,337 127,420 123,321 124,177 123,532 379,078 363,635 
Other (2)15,953 15,964 16,790 16,059 15,503 48,707 46,010 
Same Property real estate revenues$144,290 $143,384 $140,111 $140,236 $139,035 $427,785 $409,645 
Same Property NOI from real estate operations (“NOI”)     
Defense/IT Portfolio:
Fort Meade/BW Corridor$46,721 $46,489 $43,887 $44,858 $44,760 $137,097 $130,280 
NoVA Defense/IT12,433 12,158 12,257 11,862 11,835 36,848 35,488 
Lackland Air Force Base7,625 7,645 7,660 7,690 7,670 22,930 22,920 
Navy Support4,177 4,510 4,293 4,610 4,487 12,980 13,811 
Redstone Arsenal5,746 5,197 5,465 5,307 5,280 16,408 16,057 
Data Center Shells:
Consolidated properties2,166 2,170 2,238 2,088 2,032 6,574 6,098 
CDP’s share of unconsolidated real estate JVs1,078 1,073 1,076 1,076 1,072 3,227 3,232 
Total Defense/IT Portfolio79,946 79,242 76,876 77,491 77,136 236,064 227,886 
Other (2)7,230 7,012 7,576 7,304 7,349 21,818 21,632 
Same Property NOI (1)$87,176 $86,254 $84,452 $84,795 $84,485 $257,882 $249,518 
(1)Refer to the section entitled “Supplementary Reconciliations of Non-GAAP Measures” for reconciliation.
(2)Includes our retrospective reclassification in the quarter ended 9/30/23 of a portfolio of office properties located in the Greater Washington, DC/Baltimore region that we previously reported as a separate segment referred to as Regional Office.


17

COPT Defense Properties
Same Property Cash NOI by Segment
(dollars in thousands)
 Three Months EndedNine Months Ended
 9/30/236/30/233/31/2312/31/229/30/229/30/239/30/22
Same Property cash NOI from real estate operations (“cash NOI”)     
Defense/IT Portfolio:
Fort Meade/BW Corridor$45,783 $45,894 $43,949 $45,285 $44,723 $135,626 $129,607 
NoVA Defense/IT12,764 12,642 11,423 10,274 10,197 36,829 30,607 
Lackland Air Force Base7,913 7,919 7,915 7,889 7,757 23,747 23,134 
Navy Support4,545 4,825 4,940 5,163 4,857 14,310 14,503 
Redstone Arsenal4,894 3,706 4,704 4,746 4,582 13,304 14,021 
Data Center Shells:
Consolidated properties1,894 1,954 2,020 1,866 1,810 5,868 5,404 
CDP’s share of unconsolidated real estate JVs1,013 1,005 1,000 994 986 3,018 2,956 
Total Defense/IT Portfolio78,806 77,945 75,951 76,217 74,912 232,702 220,232 
Other (1)7,134 7,092 7,243 6,591 7,316 21,469 19,190 
Same Property cash NOI (2)$85,940 $85,037 $83,194 $82,808 $82,228 $254,171 $239,422 
Percentage change in total Same Property cash NOI (2)4.5%6.2%
Percentage change in Defense/IT Portfolio Same Property cash NOI (3)5.2%5.7%
(1)Includes our retrospective reclassification in the quarter ended 9/30/23 of a portfolio of office properties located in the Greater Washington, DC/Baltimore region that we previously reported as a separate segment referred to as Regional Office.
(2)Refer to the section entitled “Supplementary Reconciliations of Non-GAAP Measures” for reconciliation.
(3)Represents the change between the current period and the same period in the prior year.

chart-55b9bf79f99e4b69915.jpgchart-6dfa075f41e248aab95.jpg
18

COPT Defense Properties
Leasing (1)(2)
Three Months Ended 9/30/23
(square feet in thousands)
Defense/IT Portfolio
 Ft Meade/BW CorridorNoVA Defense/ITNavy SupportRedstone ArsenalTotal Defense/IT PortfolioOther Total
Renewed Space    
Leased Square Feet328 17 20 368 370 
Expiring Square Feet375 47 23 448 452 
Vacating Square Feet47 30 — 80 81 
Retention Rate (% based upon square feet)87.5 %36.6 %85.8 %100.0 %82.2 %64.4 %82.0 %
Statistics for Completed Leasing:
Per Annum Average Committed Cost per Square Foot $3.27 $2.52 $1.20 $1.04 $3.11 $5.14 $3.12 
Weighted Average Lease Term in Years4.1 5.0 4.6 3.2 4.2 9.6 4.2 
Straight-line Rent Per Square Foot
Renewal Straight-line Rent$33.19 $43.86 $30.90 $26.12 $33.52 $39.27 $33.56 
Expiring Straight-line Rent$30.60 $39.56 $25.07 $25.50 $30.69 $30.73 $30.69 
Change in Straight-line Rent8.5 %10.9 %23.3 %2.4 %9.2 %27.8 %9.3 %
Cash Rent Per Square Foot
Renewal Cash Rent$32.60 $42.05 $29.46 $26.78 $32.83 $36.29 $32.85 
Expiring Cash Rent$32.14 $41.19 $27.97 $26.13 $32.29 $36.29 $32.32 
Change in Cash Rent1.4 %2.1 %5.3 %2.5 %1.7 %— %1.7 %
Average Escalations Per Year2.7 %2.8 %2.9 %2.5 %2.7 %2.5 %2.7 %
New Leases
Development and Redevelopment Space
Leased Square Feet— — — — — — — 
Statistics for Completed Leasing:
Per Annum Average Committed Cost per Square Foot$— $— $— $— $— $— $— 
Weighted Average Lease Term in Years— — — — — — — 
Straight-line Rent Per Square Foot$— $— $— $— $— $— $— 
Cash Rent Per Square Foot$— $— $— $— $— $— $— 
Vacant Space
Leased Square Feet21 79 37 10 147 151 
Statistics for Completed Leasing:
Per Annum Average Committed Cost per Square Foot $5.79 $10.43 $7.01 $6.50 $8.65 $12.70 $8.75 
Weighted Average Lease Term in Years5.4 10.1 5.8 10.0 8.4 10.0 8.4 
Straight-line Rent Per Square Foot$36.45 $34.25 $27.41 $28.44 $32.46 $60.58 $33.18 
Cash Rent Per Square Foot$35.35 $33.07 $27.92 $27.00 $31.70 $55.76 $32.32 
Total Square Feet Leased349 96 57 13 515 6 521 
Average Escalations Per Year2.7 %2.6 %2.7 %2.5 %2.6 %2.7 %2.6 %
Average Escalations Excl. Data Center Shells2.6 %
(1)Activity excludes owner occupied space, leases with less than a one-year term and expirations associated with space removed from service. Weighted average lease term is based on the term defined in the lease assuming no exercise of early termination rights. Committed costs for leasing are reported above in the period of lease execution. Actual capital expenditures for leasing are reported on page 10 in the period such costs are incurred.
(2)Refer to the section entitled “Definitions” for definitions of certain terms on this schedule.

19

COPT Defense Properties
Leasing (1)(2)
Nine Months Ended 9/30/23
(square feet in thousands)
Defense/IT Portfolio
 Ft Meade/BW CorridorNoVA Defense/ITNavy SupportRedstone ArsenalData Center ShellsTotal Defense/IT PortfolioOtherTotal
Renewed Space    
Leased Square Feet1,009 240 113 — 1,365 1,367 
Expiring Square Feet1,089 324 147 — 1,562 94 1,656 
Vacating Square Feet80 84 34 — — 198 91 289 
Retention Rate (% based upon square feet)92.6 %74.2 %76.9 %100.0 %— %87.3 %2.5 %82.5 %
Statistics for Completed Leasing:
Per Annum Average Committed Cost per Square Foot$2.64 $4.27 $1.98 $1.04 $— $2.87 $5.14 $2.87 
Weighted Average Lease Term in Years4.5 4.8 2.8 3.2 — 4.4 9.6 4.4 
Straight-line Rent Per Square Foot
Renewal Straight-line Rent$37.12 $36.69 $23.25 $26.12 $— $35.88 $39.27 $35.88 
Expiring Straight-line Rent$34.57 $34.01 $21.62 $25.50 $— $33.38 $30.73 $33.38 
Change in Straight-line Rent7.4 %7.9 %7.5 %2.4 %— %7.5 %27.8 %7.5 %
Cash Rent Per Square Foot
Renewal Cash Rent$37.19 $38.27 $23.49 $26.78 $— $36.23 $36.29 $36.23 
Expiring Cash Rent$36.67 $38.20 $23.06 $26.13 $— $35.79 $36.29 $35.79 
Change in Cash Rent1.4 %0.2 %1.9 %2.5 %— %1.2 %— %1.2 %
Average Escalations Per Year2.7 %2.3 %2.4 %2.5 %— %2.6 %2.5 %2.6 %
New Leases
Development and Redevelopment Space
Leased Square Feet— — — 77 418 495 — 495 
Statistics for Completed Leasing:
Per Annum Average Committed Cost per Square Foot$— $— $— $7.77 $— $1.21 $— $1.21 
Weighted Average Lease Term in Years— — — 10.4 15.0 14.3 — 14.3 
Straight-line Rent Per Square Foot$— $— $— $33.39 $31.69 $31.96 $— $31.96 
Cash Rent Per Square Foot$— $— $— $30.46 $27.40 $27.88 $— $27.88 
Vacant Space
Leased Square Feet132 127 42 11 — 312 26 337 
Statistics for Completed Leasing:
Per Annum Average Committed Cost per Square Foot$6.83 $10.57 $7.49 $6.45 $— $8.42 $13.16 $8.79 
Weighted Average Lease Term in Years6.6 10.0 5.8 9.3 — 8.0 6.3 7.9 
Straight-line Rent Per Square Foot$30.39 $33.83 $27.91 $28.51 $— $31.39 $37.95 $31.89 
Cash Rent Per Square Foot$29.71 $33.30 $28.44 $27.07 $— $30.90 $37.58 $31.41 
Total Square Feet Leased1,141 367 155 91 418 2,172 28 2,199 
Average Escalations Per Year2.6 %2.4 %2.6 %2.8 %2.3 %2.5 %2.7 %2.5 %
Average Escalations Excl. Data Center Shells2.6 %
(1)Activity excludes owner occupied space, leases with less than a one-year term and expirations associated with space removed from service. Weighted average lease term is based on the term defined in the lease assuming no exercise of early termination rights. Committed costs for leasing are reported above in the period of lease execution. Actual capital expenditures for leasing are reported on page 10 in the period such costs are incurred.
(2)Refer to the section entitled “Definitions” for definitions of certain terms on this schedule.
20

COPT Defense Properties
Lease Expiration Analysis as of 9/30/23 (1)
(dollars and square feet in thousands, except per square foot amounts)
Segment of Lease and Year of Expiration (2)Square Footage of Leases ExpiringAnnualized Rental
Revenue of Expiring Leases (3)
% of Defense/IT
Annualized 
Rental
Revenue
Expiring (3)
Annualized Rental
Revenue of
Expiring Leases per Occupied Sq. Foot (3)
Defense/IT Portfolio
Ft Meade/BW Corridor423 $17,596 3.1 %$41.58 
NoVA Defense/IT48 1,561 0.3 %32.79 
Navy Support15 393 0.1 %26.46 
2023486 19,551 3.5 %40.25 
Ft Meade/BW Corridor1,180 45,333 8.0 %38.38 
NoVA Defense/IT251 9,164 1.6 %36.56 
Navy Support465 11,824 2.1 %25.45 
Redstone Arsenal102 3,073 0.5 %30.01 
Data Center Shells-Unconsolidated JV Properties546 718 0.1 %13.15 
20242,544 70,112 12.4 %34.14 
Ft Meade/BW Corridor1,789 67,540 11.9 %37.70 
NoVA Defense/IT281 11,781 2.1 %41.97 
Lackland Air Force Base703 39,521 7.0 %56.24 
Navy Support154 3,994 0.7 %25.97 
Redstone Arsenal296 6,933 1.2 %23.40 
Data Center Shells-Unconsolidated JV Properties121 170 — %14.09 
20253,344 129,940 23.0 %40.14 
Ft Meade/BW Corridor807 32,001 5.7 %39.64 
NoVA Defense/IT66 2,211 0.4 %33.26 
Lackland Air Force Base250 12,565 2.2 %50.26 
Navy Support173 5,813 1.0 %33.58 
Redstone Arsenal46 1,157 0.2 %25.28 
Data Center Shells-Unconsolidated JV Properties446 804 0.1 %18.03 
20261,788 54,552 9.6 %39.32 
Ft Meade/BW Corridor685 25,922 4.6 %37.76 
NoVA Defense/IT190 6,269 1.1 %32.94 
Navy Support188 7,482 1.3 %39.80 
Redstone Arsenal163 4,378 0.8 %26.84 
Data Center Shells-Unconsolidated JV Properties364 486 0.1 %13.36 
20271,590 44,538 7.9 %35.22 
Thereafter
Consolidated Properties7,900 242,415 42.9 %30.01 
Unconsolidated JV Properties2,819 4,537 0.8 %16.10 
Total Defense/IT Portfolio20,471 $565,645 100.0 %$33.73 
21

COPT Defense Properties
Lease Expiration Analysis as of 9/30/23 (1) (continued)
(dollars and square feet in thousands, except per square foot amounts)
Segment of Lease and Year of Expiration (2)Square Footage of Leases ExpiringAnnualized Rental
Revenue of Expiring Leases (3)
% of Total
Annualized 
Rental
Revenue
Expiring (3)
Annualized Rental
Revenue of
Expiring Leases per Occupied Sq. Foot (3)
Total Defense/IT Portfolio20,471 $565,645 89.3 %$33.73 
Other
202330 1,251 0.2 %41.77 
2024227 6,469 1.0 %28.32 
2025135 10,608 1.7 %35.62 
2026164 5,951 0.9 %36.20 
2027115 4,315 0.7 %37.33 
Thereafter943 39,159 6.2 %41.34 
Total Other1,614 67,753 10.7 %38.23 
Total Portfolio22,085 $633,398 100.0 %$34.13 
Consolidated Portfolio17,790 $626,681 
Unconsolidated JV Properties4,295 $6,716 
Note: As of 9/30/23, the weighted average lease term was 5.2 years for the Defense/IT Portfolio, 5.3 years for the total portfolio and 5.1 years for the consolidated portfolio.

(1)This expiration analysis reflects occupied space of our total portfolio (including consolidated and unconsolidated properties) and includes the effect of early renewals completed on existing leases but excludes the effect of new tenant leases on square feet yet to commence as of 9/30/23. With regard to properties owned through unconsolidated real estate joint ventures, the amounts reported above reflect 100% of the properties’ square footage but only reflect the portion of Annualized Rental Revenue that was allocable to CDP’s ownership interest.
(2)A number of our leases are subject to certain early termination provisions.  The year of lease expiration is based on the lease term determined in accordance with GAAP.
(3)Refer to the section entitled “Definitions” for a definition of annualized rental revenue.
chart-1d07616bbc5240bd8ab.jpg
22

COPT Defense Properties
2024 Defense/IT Portfolio Quarterly Lease Expiration Analysis as of 9/30/23 (1)
(dollars and square feet in thousands, except per square foot amounts)
Segment of Lease and Quarter of Expiration (2)Square Footage of Leases ExpiringAnnualized Rental
Revenue of Expiring Leases (3)
% of Defense/IT
Annualized
Rental
Revenue Expiring (3)
Annualized Rental Revenue of Expiring Leases per Occupied Sq. Foot (3)
Defense IT Portfolio
Ft Meade/BW Corridor343 $11,898 2.1 %$34.68 
NoVA Defense/IT55 1,789 0.3 %32.47 
Navy Support125 3,451 0.6 %27.51 
Redstone Arsenal122 — %29.11 
Data Center Shells-Unconsolidated JV Properties236 279 — %1.18 
Q1 2024763 17,539 3.0 %31.81 
Ft Meade/BW Corridor277 9,663 1.7 %34.90 
NoVA Defense/IT73 2,663 0.5 %36.53 
Navy Support21 627 0.1 %30.11 
Redstone Arsenal101 — %27.32 
Q2 2024375 13,054 2.3 %34.87 
Ft Meade/BW Corridor280 10,291 1.8 %36.60 
NoVA Defense/IT13 435 0.1 %33.33 
Navy Support181 3,807 0.7 %21.01 
Redstone Arsenal130 — %33.25 
Data Center Shells-Unconsolidated JV Properties310 439 0.1 %1.42 
Q3 2024788 15,102 2.7 %29.58 
Ft Meade/BW Corridor280 13,481 2.4 %48.13
NoVA Defense/IT110 4,276 0.8 %39.02 
Navy Support137 3,940 0.7 %28.74 
Redstone Arsenal91 2,720 0.5 %30.02 
Q4 2024618 24,417 4.4 %39.55 
2,544 $70,112 12.4 %$34.14 
(1)This expiration analysis reflects occupied space of our total portfolio (including consolidated and unconsolidated properties) and includes the effect of early renewals completed on existing leases but excludes the effect of new tenant leases on square feet yet to commence as of 9/30/23.
(2)A number of our leases are subject to certain early termination provisions.  The period of lease expiration is based on the lease term determined in accordance with GAAP.
(3)Refer to the section entitled “Definitions” for a definition of annualized rental revenue.

23

COPT Defense Properties
Top 20 Tenants as of 9/30/23 (1)
(dollars and square feet in thousands)
TenantTotal
Annualized
Rental Revenue (2)
%
of Total
Annualized 
Rental Revenue (2)
Occupied Square FeetWeighted Average Remaining Lease Term (3)
United States Government(4)$230,515 36.4 %5,512 3.9 
Fortune 100 Company44,473 7.0 %5,802 7.8 
General Dynamics Corporation32,664 5.2 %703 3.2 
Northrop Grumman Corporation14,712 2.3 %519 6.0 
The Boeing Company14,639 2.3 %443 2.9 
CACI International Inc 14,626 2.3 %354 4.2 
Peraton Corp. 12,630 2.0 %330 5.0 
Booz Allen Hamilton, Inc. 11,810 1.9 %297 2.4 
Fortune 100 Company 11,752 1.9 %183 11.0 
Morrison & Foerster, LLP 9,437 1.5 %102 13.5 
CareFirst Inc.8,836 1.4 %264 10.9 
KBR, Inc. 7,831 1.2 %310 7.1 
Yulista Holding, LLC 6,906 1.1 %368 6.2 
RTX Corporation 6,890 1.1 %186 3.7 
Wells Fargo & Company 6,824 1.1 %159 4.5 
Miles and Stockbridge, PC 6,702 1.1 %160 3.2 
AT&T Corporation 6,649 1.0 %321 6.0 
Mantech International Corp. 6,467 1.0 %200 1.8 
Jacobs Engineering Group Inc. 6,392 1.0 %185 5.3 
The University System of Maryland 5,885 0.9 %172 5.0 
Subtotal Top 20 Tenants 466,640 73.7 %16,570 5.7 
All remaining tenants 166,758 26.3 %5,515 3.9 
Total / Weighted Average $633,398 100.0 %22,085 5.3 

(1)For properties owned through unconsolidated real estate JVs, includes CDP’s share of those properties’ ARR of $6.7 million (see page 34 for additional information).
(2)Refer to the section entitled “Definitions” for a definition of annualized rental revenue.
(3)Weighted average remaining lease term is based on the lease term determined in accordance with GAAP. The weighting of the lease term was computed based on occupied square feet (excluding leases not associated with square feet, such as ground leases).
(4)Substantially all of our government leases are subject to early termination provisions which are customary in government leases. As of 9/30/23, $5.8 million of our ARR was through the General Services Administration (GSA), representing 2.5% of our ARR from the United States Government and 0.9% of our total ARR.






24

COPT Defense Properties
Property Dispositions
(dollars and square feet in thousands)
PropertyProperty Segment/Sub-SegmentLocation# of PropertiesOperational Square FeetTransaction
Date
% Occupied on Transaction DateTransaction
Value
(in millions)
90% interest in P2 A, B and C (1)Data Center ShellsNorthern Virginia7481/10/23100.0 %$190 

(1)     We sold a 90% interest in these properties based on an aggregate property value of $211.3 million and retained a 10% interest in the properties through a newly-formed JV.
25

COPT Defense Properties
Summary of Development Projects as of 9/30/23 (1)
(dollars and square feet in thousands) 
Total Rentable Square Feet
% Leased as of 9/30/23
as of 9/30/23 (2)
Actual or Anticipated Shell Completion Date Anticipated Operational Date (3)
Anticipated Total CostCost to DateCost to Date Placed in Service
Property and Segment/Sub-SegmentLocation
Fort Meade/BW Corridor:
550 National Business ParkwayAnnapolis Junction, Maryland186 100%$72,953 $53,127 $— 4Q 234Q 23
Redstone Arsenal:
5300 Redstone GatewayHuntsville, Alabama46 100%20,551 12,000 — 1Q 241Q 24
8100 Rideout RoadHuntsville, Alabama128 21%43,963 26,112 — 3Q 233Q 24
Subtotal / Average174 42%64,514 38,112 — 
Data Center Shells:
PS BNorthern Virginia193 100%52,000 38,832 — 4Q 234Q 23
Southpoint Phase 2 Bldg ANorthern Virginia225 100%78,000 15,144 — 3Q 243Q 24
Southpoint Phase 2 Bldg BNorthern Virginia193 100%69,500 4,935 — 3Q 253Q 25
Subtotal / Average611 100%199,500 58,911 — 
Total Under Development971 90%$336,967 $150,150 $   
(1)Includes properties under, or contractually committed for, development as of 9/30/23.
(2)Cost includes land, development, leasing costs and allocated portion of structured parking and other shared infrastructure, if applicable.
(3)Anticipated operational date is the earlier of the estimated date when leases have commenced on 100% of a property’s space or one year from the cessation of major construction activities.




26

COPT Defense Properties
Development Placed in Service as of 9/30/23
(square feet in thousands)
 
Total Space Placed in Service % Leased as of 9/30/23
Total PropertySquare Feet Placed in Service
Property Segment/Sub-Segment
% Leased as of 9/30/23
Rentable Square FeetPrior Year2023Total
Property and Location1st Quarter2nd Quarter3rd Quarter
Total 2023
Expedition VII
St. Mary’s County, Maryland
Navy Support62%29 18 11 — — 11 29 62%
7000 Redstone Gateway
  Huntsville, Alabama
Redstone Arsenal78%46 21 — 15 10 25 46 78%
300 Secured Gateway
  Huntsville, Alabama
Redstone Arsenal100%206 — — — 206 206 206 100%
PS A
Northern Virginia
Data Center Shells100%227 — — — 227 227 227 100%
Total Development Placed in Service96%508 39 11 15 443 469 508 96%
% Leased as of 9/30/23
0%100%98%96%

27

COPT Defense Properties
Summary of Land Owned/Controlled as of 9/30/23 (1)
(dollars and square feet in thousands)
LocationAcres Estimated Developable Square FeetCarrying Amount
Defense/IT Portfolio land owned/controlled for future development:   
Fort Meade/BW Corridor:
National Business Park1441,630
Howard County19290
Other1261,338
Total Fort Meade/BW Corridor289 3,258
NoVA Defense/IT29 1,171
Navy Support3864
Redstone Arsenal (2)3003,400
Data Center Shells10232
Total Defense/IT Portfolio land owned/controlled for future development6668,125$168,385 
Other land owned/controlled53 1,5389,524 
Land held, net7199,663$177,909 

(1)This land inventory schedule includes properties under ground lease to us and excludes all properties listed as development as detailed on page 26. The costs associated with the land included on this summary are reported on our consolidated balance sheet in the line entitled “land held.”
(2)This land is controlled under a long-term master lease agreement to LW Redstone Company, LLC, a consolidated JV (see page 33). As this land is developed in the future, the JV will execute site-specific leases under the master lease agreement. Lease payments will commence under the site-specific leases as cash rents under tenant leases commence at the respective properties.
28

COPT Defense Properties
Capitalization Overview
(dollars, shares and units in thousands)
Wtd. Avg. Maturity (Years) (1)Stated RateEffective Rate
(2)(3)
Amount Outstanding at 9/30/23
Debt
Secured debt1.95.03 %3.55 %$100,252 
Unsecured debt6.13.26 %3.34 %2,345,511 
Total Consolidated Debt5.93.33 %3.35 %$2,445,763 
Fixed rate debt (3)6.12.98 %3.35 %$2,445,763 
Variable rate debt (3)3.96.68 %N/A— 
Total Consolidated Debt$2,445,763 
Common Equity
Common Shares112,548 
Common Units (4)1,858 
Total Common Shares and Units114,406 
Closing Common Share Price on 9/29/23
$23.83 
Equity Market Capitalization (5)$2,726,295 
Total Market Capitalization (5)$5,172,058 
(1)Calculated assuming exercise of extension options on our Revolving Credit Facility and term loan.
(2)Excludes the effect of deferred financing cost amortization.
(3)Includes the effect of interest rate swaps with notional amounts totaling $233.3 million that hedge the risk of changes in interest rates on variable rate debt. We had swaps in place for all of our variable rate debt balances as of 9/30/23.
(4)Includes certain unvested share-based compensation awards in the form of profit interest units.
(5)Refer to the section entitled “Definitions” for a definition of this measure.











Investment Grade Ratings & OutlookLatest Affirmation
FitchBBB-Stable9/6/23
Moody’sBaa3Stable9/7/23
S&PBBB-Stable9/7/23
chart-2041928aacad47779ba.jpgchart-bd445b9729764ff8afb.jpg
29

COPT Defense Properties
Summary of Outstanding Debt as of 9/30/23
(dollars in thousands)
Unsecured DebtStated RateAmount OutstandingMaturity DateSecured DebtStated RateAmount OutstandingBalloon Payment Due Upon MaturityMaturity Date
Revolving Credit FacilitySOFR+
0.10%+1.05%
$75,000 Oct-26(1)(2)LW Redstone:
1000, 1200 & 1100 Redstone Gateway (3)4.47%(4)$28,505 $27,649 Jun-24
Senior Unsecured Notes
2.25% due 20262.25%400,000 Mar-264000 & 4100 Market Street and 8800 Redstone Gateway (2)(3) SOFR
+0.10%+1.55%
22,550 $22,100 Mar-25(6)
5.25% due 20285.25%345,000 Sep-28(5)
2.00% due 20292.00%400,000 Jan-29M Square:
2.75% due 20312.75%600,000 Apr-315825 & 5850 University Research Court (3) 3.82%38,497 $35,603 Jun-26
2.90% due 20332.90%400,000 Dec-33
Subtotal - Senior Unsecured Notes2.95%$2,145,000 5801 University Research Court (2)(3)SOFR
+0.10%+1.45%
10,700 $10,020 Aug-26
Unsecured Bank Term LoansTotal Secured Debt5.03%$100,252 
2026 MaturitySOFR+
0.10%+1.30%
$125,000 Jan-26(2)(7)
Other Unsecured Debt0.00%511 May-26
Total Unsecured Debt3.26%$2,345,511 
Debt Summary
Total Unsecured Debt3.26%$2,345,511 
Total Secured Debt5.03%100,252 
Consolidated Debt3.33%$2,445,763 
Debt per balance sheet$2,415,783 
Net discounts and deferred financing costs29,980 
Consolidated Debt2,445,763 
CDP’s share of unconsolidated JV gross debt (8)52,511 
Gross debt$2,498,274 
(1)The Company’s $600.0 million Revolving Credit Facility matures in October 2026 and may be extended by two six-month periods at our option.
(2)Pre-payable anytime without penalty.
(3)These properties are owned through consolidated joint ventures.
(4)Represents the weighted average rate of three loans on the properties.
(5)These notes are due in 2028 unless earlier exchanged, redeemed or repurchased only in the event of certain circumstances and during certain periods defined under the terms of the notes. Upon exchange of the notes, the principal amount of notes exchanged is payable in cash, with the remainder of the exchange obligation, if any, payable in cash, common shares or a combination thereof at our election.
(6)The loan maturity may be extended for two one-year periods, provided certain conditions are met.
(7)The Company’s term loan matures in January 2026 and may be extended by two 12-month periods at our option.
(8)See page 34 for additional disclosure regarding our unconsolidated real estate joint ventures.

30

COPT Defense Properties
Summary of Outstanding Debt as of 9/30/23 (continued)

chart-46370a9a3096431db7e.jpg
chart-555044a5add34a309c3.jpgchart-a71d4c4dc7da4a5eb14.jpg
(1)Revolving Credit Facility maturity of $75.0 million is included above in 2027 assuming our exercise of two six-month extension options.
(2)Term loan balance of $125.0 million is included in 2028 assuming our exercise of two 12-month extension options. Also includes $345.0 million principal amount of exchangeable senior notes due in 2028 unless earlier exchanged, redeemed or repurchased only in the event of certain circumstances and during certain periods defined under the terms of the notes.
(3)Includes the effect of interest rate swaps with notional amounts totaling $233.3 million that hedge the risk of changes in interest rates on variable rate debt.
31

COPT Defense Properties
Debt Analysis
(dollars and square feet in thousands)
As of and for Three Months Ended
9/30/23
As of and for Three Months Ended
9/30/23
Senior Note Covenants (1)RequiredLine of Credit & Term Loan Covenants (1)(2)Required
Total Debt / Total Assets< 60%42.8%Total Debt / Total Assets< 60%38.6%
Secured Debt / Total Assets< 40%1.8%Secured Debt / Total Assets< 40%2.0%
Debt Service Coverage> 1.5x4.0xAdjusted EBITDA / Fixed Charges> 1.5x5.3x
Unencumbered Assets / Unsecured Debt> 150%233.1%Unsecured Debt / Unencumbered Assets< 60%39.4%
Unencumbered Adjusted NOI / Unsecured Interest Expense> 1.75x4.8x
Debt Ratios (All coverage computations include discontinued operations)Page Refer.Unencumbered Portfolio Analysis
GAAP# of unencumbered properties168 
Debt per balance sheet6$2,415,783 % of total portfolio86 %
Total assets6$4,239,257 Unencumbered square feet in-service19,467 
Debt to assets57.0 %% of total portfolio83 %
Net loss7$(221,207)NOI from unencumbered real estate operations$92,350 
Debt to net income ratio (2)N/A% of total NOI from real estate operations96 %
Interest expense7$17,798 Adjusted EBITDA from unencumbered real estate operations$86,115 
Net income to interest expense ratio (2)N/A% of total adjusted EBITDA from real estate operations95 %
Unencumbered adjusted book$5,389,833 
Non-GAAP% of total adjusted book95 %
Net debt38$2,293,005 
Adjusted book38$5,665,861 
Net debt to adjusted book40.5 %
Net debt adj. for fully-leased development38$2,168,967 
In-place adjusted EBITDA11$91,907 
Net debt to in-place adjusted EBITDA ratio 6.2 x
Net debt adj. for fully-leased devel. to in-place adj. EBITDA ratio5.9 x
Denominator for debt service coverage37$17,967 
Denominator for fixed charge coverage37$19,454 
Adjusted EBITDA11$90,260 
Adjusted EBITDA debt service coverage ratio5.0 x
Adjusted EBITDA fixed charge coverage ratio4.6 x
(1)The covenants are calculated as defined in the applicable agreements, and the calculations differ between those agreements.
(2)Refer to the section entitled “Definitions” for a definition of this measure.
32

COPT Defense Properties
Consolidated Real Estate Joint Ventures as of 9/30/23
(dollars and square feet in thousands)

NOI from Real Estate Operations (1)Venture Level Debt Outstanding (3)CDP Nominal
Ownership %
Operating PropertiesOperational
Square Feet
% Occupied% LeasedThree Months EndedNine Months EndedTotal Assets (2)
Suburban Maryland:      
M Square Associates, LLC (4 properties)
414 92.1%92.1%$1,848 $4,741 $93,416 $49,197 50%
Huntsville, Alabama:
LW Redstone Company, LLC (21 properties)
2,164 96.5%98.4%8,402 24,646 557,140 51,055 85%(4)
Washington, D.C.:
Stevens Place (1 property)
188 60.6%61.9%1,143 3,765 126,846 — 95%
Total / Average2,766 93.4%95.0%$11,393 $33,152 $777,402 $100,252 
 
        
Non-Operating PropertiesEstimated Developable Square FeetTotal Assets (2)Venture Level Debt OutstandingCDP Nominal Ownership %
Suburban Maryland:    
M Square Research Park348 $5,979 $— 50%
Huntsville, Alabama:    
Redstone Gateway (5)3,574 140,343 — 85%(3)
Total3,922 $146,322 $  
 
(1)Represents NOI from real estate operations of the JV operating properties before allocation to JV partners.
(2)Total assets includes the assets of the consolidated JV plus any outside investment basis.
(3)Excludes debt from us to the JV, which is eliminated in the presentation of our consolidated financial statements.
(4)Our partner receives an annual priority return of 13.5% on its $9.0 million in contributed equity, plus certain fees for leasing and development, and we expect to receive all other distributions from the JV.
(5)Total assets include $74.3 million in notes receivable due from the City of Huntsville (including accrued interest and excluding allowance for credit losses) in connection with infrastructure costs funded by the JV.
33

COPT Defense Properties
Unconsolidated Real Estate Joint Ventures as of 9/30/23 (1)
(dollars and square feet in thousands) 
Joint venture information
CDP ownership %10 %
CDP’s investment$39,168 (2)
# of Properties24 
Square Feet4,295 
% Occupied100 %
CDP’s share of ARR$6,716 
Balance sheet informationTotalCDP’s Share (4)
Operating properties, net$963,890 $96,389 
Total assets$1,067,662 $106,766 
Debt (3)$520,093 $52,009 
Total liabilities$607,618 $60,762 
Three Months EndedNine Months Ended
Operating information TotalCDP’s Share (4)TotalCDP’s Share (4)
Revenue$19,695 $1,969 $58,785 $5,878 
Operating expenses(2,944)(294)(8,907)(890)
NOI from real estate operations and EBITDAre (5)16,751 1,675 49,878 4,988 
Interest expense(9,370)(937)(25,941)(2,594)
Depreciation and amortization(8,520)(806)(25,507)(2,412)
Net loss$(1,139)$(68)$(1,570)$(18)
NOI from real estate operations (per above) (5)$16,751 $1,675 $49,878 $4,988 
Straight line rent adjustments(695)(69)(2,273)(227)
Amortization of acquired above- and below-market rents(2,097)(210)(6,288)(629)
Cash NOI from real estate operations (5)$13,959 $1,396 $41,317 $4,132 
(1)Includes equity method investments in five JVs that own and operate data center shell properties, including one JV formed on 1/10/23 in connection with our sale of a 90% interest in three data center shell properties totaling 748,000 square feet and retention of a 10% interest in the properties through the JV.
(2)Includes $41.5 million reported in “Investment in unconsolidated real estate joint ventures” and $2.3 million for investments with deficit balances reported in “other liabilities” on our consolidated balance sheet.
(3)Maturities on JV debt range from 2027 (assuming exercise of three one-year extension options) to 2030.
(4)Represents the portion allocable to our ownership interest.
(5)Refer to the section entitled “Definitions” for definitions of these measures.



34

COPT Defense Properties
Supplementary Reconciliations of Non-GAAP Measures
(in thousands)
 Three Months EndedNine Months Ended
 9/30/236/30/233/31/2312/31/229/30/229/30/239/30/22
Net (loss) income$(221,207)$31,642 $80,398 $52,087 $32,316 $(109,167)$126,735 
Construction contract and other service revenues(11,949)(14,243)(15,820)(24,062)(34,813)(42,012)(130,570)
Depreciation and other amortization associated with real estate operations37,620 37,600 36,995 36,907 35,247 112,215 104,323 
Construction contract and other service expenses11,493 13,555 15,201 23,454 33,555 40,249 126,509 
Impairment losses252,797 — — — — 252,797 — 
General and administrative expenses7,582 7,287 7,996 7,766 6,558 22,865 19,695 
Leasing expenses2,280 2,345 1,999 2,235 2,340 6,624 6,102 
Business development expenses and land carry costs714 726 495 1,157 552 1,935 2,036 
Interest expense17,798 16,519 16,442 16,819 15,123 50,759 44,355 
Interest and other income, net(2,529)(2,143)(2,256)(4,671)(597)(6,928)(4,399)
Gain on sales of real estate from continuing operations— (14)(49,378)(19,238)(16)(49,392)(12)
Loss on early extinguishment of debt— — — 267 — — 342 
Equity in loss (income) of unconsolidated entities68 (111)64 (229)(308)21 (1,514)
Unconsolidated real estate JVs NOI allocable to CDP included in equity in (loss) income of unconsolidated entities (1)1,675 1,671 1,642 1,095 1,072 4,988 3,232 
Income tax expense152 190 125 223 67 467 224 
Discontinued operations— — — — — — (29,573)
Revenues from real estate operations from discontinued operations— — — — — — 1,980 
Property operating expenses from discontinued operations— — — — — — (971)
NOI from real estate operations96,494 95,024 93,903 93,810 91,096 285,421 268,494 
Straight line rent adjustments and lease incentive amortization13,262 (2,916)(3,818)(2,974)932 6,528 (4,848)
Amortization of acquired above- and below-market rents(120)(129)(166)(131)(97)(415)(713)
Amortization of intangibles and other assets to property operating expenses147 146 147 146 147 440 440 
Lease termination fees, net(748)(1,059)(1,221)(1,026)(591)(3,028)(1,211)
Tenant funded landlord assets and lease incentives(19,383)(2,221)(1,230)(1,109)(3,530)(22,834)(6,706)
Cash NOI adjustments in unconsolidated real estate JVs(279)(286)(291)(83)(87)(856)(277)
Cash NOI from real estate operations$89,373 $88,559 $87,324 $88,633 $87,870 $265,256 $255,179 
NOI from real estate operations (from above)$96,494 $95,024 $93,903 $93,810 $91,096 $285,421 $268,494 
Non-Same Property NOI from real estate operations(9,318)(8,770)(9,451)(9,015)(6,611)(27,539)(18,976)
Same Property NOI from real estate operations87,176 86,254 84,452 84,795 84,485 257,882 249,518 
Straight line rent adjustments and lease incentive amortization15,060 1,232 1,392 319 544 17,684 (3,048)
Amortization of acquired above- and below-market rents(120)(129)(166)(131)(97)(415)(713)
Lease termination fees, net(748)(1,059)(1,221)(1,026)(591)(3,028)(1,211)
Tenant funded landlord assets and lease incentives(15,364)(1,191)(1,188)(1,068)(2,026)(17,743)(4,847)
Cash NOI adjustments in unconsolidated real estate JVs(64)(70)(75)(81)(87)(209)(277)
Same Property Cash NOI from real estate operations$85,940 $85,037 $83,194 $82,808 $82,228 $254,171 $239,422 
(1)See page 34 for additional disclosure regarding our unconsolidated real estate JVs.
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COPT Defense Properties
Supplementary Reconciliations of Non-GAAP Measures (continued)
(in thousands)
 Three Months EndedNine Months Ended
 9/30/236/30/233/31/2312/31/229/30/229/30/239/30/22
Real estate revenues
Lease revenue
Fixed contractual payments$120,408 $118,461 $116,039 $116,349 $113,700 $354,908 $339,011 
Variable lease payments (1)34,860 35,221 34,521 33,673 32,781 104,602 93,116 
Lease revenue155,268 153,682 150,560 150,022 146,481 459,510 432,127 
Other property revenue1,339 1,271 1,121 1,163 1,206 3,731 3,066 
Real estate revenues$156,607 $154,953 $151,681 $151,185 $147,687 $463,241 $435,193 
Provision for credit losses (recoveries) on billed lease revenue$13 $(196)$269 $— $$86 $501 
Discontinued operations
Revenues from real estate operations$— $— $— $— $— $— $1,980 
Property operating expenses— — — — — — (971)
Gain on sale of real estate— — — — — — 28,564 
Discontinued operations$ $ $ $ $ $ $29,573 
Total revenues from continuing operations$168,556 $169,196 $167,501 $175,247 $182,500 $505,253 $563,783 
Construction contract and other service revenues(11,949)(14,243)(15,820)(24,062)(34,813)(42,012)(130,570)
Revenues from discontinued operations— — — — — — 1,980 
Real estate revenues$156,607 $154,953 $151,681 $151,185 $147,687 $463,241 $435,193 
Gain on sales of real estate from continuing operations$ $14 $49,378 $19,238 $16 $49,392 $12 
Gain on sales of real estate from discontinued operations— — — — — — 28,564 
Gain on sales of real estate$ $14 $49,378 $19,238 $16 $49,392 $28,576 
(1)Represents primarily lease revenue associated with property operating expense reimbursements from tenants.
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COPT Defense Properties
Supplementary Reconciliations of Non-GAAP Measures (continued)
(in thousands)
 Three Months EndedNine Months Ended
 9/30/236/30/233/31/2312/31/229/30/229/30/239/30/22
Total interest expense$17,798 $16,519 $16,442 $16,819 $15,123 $50,759 $44,355 
Less: Amortization of deferred financing costs(639)(628)(632)(619)(540)(1,899)(1,678)
Less: Amortization of net debt discounts, net of amounts capitalized(750)(622)(618)(615)(612)(1,990)(1,825)
CDP’s share of interest expense of unconsolidated real estate JVs, excluding amortization of deferred financing costs and net debt premium and loss on interest rate derivatives805 791 773 423 236 2,369 700 
Denominator for interest coverage17,214 16,060 15,965 16,008 14,207 49,239 41,552 
Scheduled principal amortization753 746 790 864 851 2,289 2,469 
Denominator for debt service coverage17,967 16,806 16,755 16,872 15,058 51,528 44,021 
Capitalized interest1,487 1,194 770 1,835 1,969 3,451 4,874 
Denominator for fixed charge coverage$19,454 $18,000 $17,525 $18,707 $17,027 $54,979 $48,895 
Dividends on unrestricted common and deferred shares$31,996 $31,995 $31,989 $30,844 $30,844 $95,980 $92,523 
Distributions on unrestricted common units432 433 430 406 406 1,295 1,217 
Dividends and distributions on restricted shares and units200 204 215 134 140 619 433 
Total dividends and distributions for GAAP payout ratio32,628 32,632 32,634 31,384 31,390 97,894 94,173 
Dividends and distributions on antidilutive shares and units(202)(205)(216)(121)(127)(623)(395)
Dividends and distributions for non-GAAP payout ratios$32,426 $32,427 $32,418 $31,263 $31,263 $97,271 $93,778 


37

COPT Defense Properties
Supplementary Reconciliations of Non-GAAP Measures (continued)
(in thousands)
9/30/236/30/233/31/2312/31/229/30/22
Total assets$4,239,257 $4,246,346 $4,177,992 $4,257,275 $4,269,329 
Accumulated depreciation1,367,473 1,334,066 1,300,430 1,267,434 1,245,313 
Accumulated depreciation included in assets held for sale— — — 6,014 — 
Accumulated amortization of intangibles on property acquisitions and deferred leasing costs228,334 226,555 224,791 222,779 221,646 
CDP’s share of liabilities of unconsolidated real estate JVs60,762 60,724 60,734 52,404 27,272 
CDP’s share of accumulated depreciation and amortization of unconsolidated real estate JVs8,664 7,800 6,936 6,078 5,495 
Less: Property - operating lease liabilities(32,940)(33,923)(34,896)(28,759)(29,088)
Less: Property - finance lease liabilities(420)(426)(431)— — 
Less: Cash and cash equivalents(204,238)(14,273)(15,199)(12,337)(12,643)
Less: CDP’s share of cash of unconsolidated real estate JVs(1,031)(974)(881)(456)(547)
Adjusted book$5,665,861 $5,825,895 $5,719,476 $5,770,432 $5,726,777 
Gross debt (page 30)
$2,498,274 $2,249,880 $2,197,488 $2,307,054 $2,319,068 
Less: Cash and cash equivalents(204,238)(14,273)(15,199)(12,337)(12,643)
Less: CDP’s share of cash of unconsolidated real estate JVs(1,031)(974)(881)(456)(547)
Net debt2,293,005 2,234,633 2,181,408 2,294,261 2,305,878 
Costs incurred on fully-leased development properties(124,038)(189,407)(137,309)(95,972)(275,359)
Net debt adjusted for fully-leased development $2,168,967 $2,045,226 $2,044,099 $2,198,289 $2,030,519 
Net debt$2,293,005 $2,234,633 $2,181,408 $2,294,261 $2,305,878 
Pro forma debt adjustments from subsequent event transaction proceeds (1)N/AN/AN/A(189,000)N/A
Pro forma net debt2,293,005 2,234,633 2,181,408 2,105,261 2,305,878 
Costs incurred on fully-leased development properties(124,038)(189,407)(137,309)(95,972)(275,359)
Pro forma net debt adjusted for fully-leased development$2,168,967 $2,045,226 $2,044,099 $2,009,289 $2,030,519 
(1)Includes, for the 12/31/22 period, the effect of resulting proceeds available for debt pay downs from our sale on 1/10/23 of a 90% interest in three data center shell properties.
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COPT Defense Properties
Definitions
Non-GAAP Measures

We believe that the measures defined below that are not determined in accordance with generally accepted accounting principles (“GAAP”) are helpful to investors in measuring our performance and comparing it to that of other real estate investment trusts (“REITs”).  Since these measures exclude certain items includable in their respective most comparable GAAP measures, reliance on the measures has limitations; management compensates for these limitations by using the measures simply as supplemental measures that are weighed in balance with other GAAP and non-GAAP measures.  These measures should not be used as an alternative to the respective most comparable GAAP measures when evaluating our financial performance or to cash flow from operating, investing and financing activities when evaluating our liquidity or ability to make cash distributions or pay debt service.
 
Adjusted book
Defined as total assets presented on our consolidated balance sheet, net of lease liabilities associated with property right-of-use assets, and excluding the effect of cash and cash equivalents, accumulated depreciation on real estate properties, accumulated amortization of intangible assets on real estate acquisitions, accumulated amortization of deferred leasing costs and unconsolidated real estate joint ventures (“JVs”) cash and cash equivalents, liabilities and accumulated depreciation and amortization (of intangibles on property acquisitions and deferred leasing costs) allocable to our ownership interest in the JVs. We use adjusted book for purposes of calculating our net debt to adjusted book, which we believe is a useful supplemental measure for investors to use in further understanding the relationship of our outstanding debt to our assets available to service such debt. We believe that total assets is the most directly comparable GAAP measure to this non-GAAP measure.

Adjusted earnings before interest, income taxes, depreciation and amortization (“Adjusted EBITDA”) 
Adjusted EBITDA is net income or loss adjusted for the effects of interest expense, depreciation and amortization, gain on sales and impairment losses of real estate and investments in unconsolidated real estate JVs, gain or loss on early extinguishment of debt, loss on interest rate derivatives, net gain or loss on other investments, credit loss expense or recoveries, operating property acquisition costs, income taxes, business development expenses, demolition costs on redevelopment and nonrecurring improvements, executive transition costs and certain other expenses that we believe are not relevant to an investor’s evaluation of our ability to repay debt.  Adjusted EBITDA also includes adjustments to net income or loss for the effects of the items noted above pertaining to unconsolidated real estate JVs that were allocable to our ownership interest in the JVs. While EBITDA (earnings before interest, taxes, depreciation and amortization) is a universally-defined supplemental measure, Adjusted EBITDA incorporates additional adjustments for gains and losses from investing and financing activities and certain other items that we believe represent costs that are not closely correlated to (or associated with) our operating performance and are not relevant to an investor’s evaluation of our ability to repay debt. We believe that adjusted EBITDA is a
useful supplemental measure for assessing our un-levered performance and ability to repay outstanding debt from operations.  We believe that net income or loss is the most directly comparable GAAP measure to this non-GAAP measure.
 
Adjusted EBITDA debt service coverage ratio 
This measure divides Adjusted EBITDA by the sum of interest expense (excluding amortization of deferred financing costs and amortization of debt discounts and premiums, net of amounts capitalized, and gains or losses on interest rate derivatives) and scheduled principal amortization on mortgage loans.

Amortization of acquisition intangibles included in NOI 
Represents the amortization of intangible asset and liability categories that is included in net operating income, including amortization of above- or below-market leases and above- or below-market cost arrangements.

Basic FFO available to common share and common unit holders (“Basic FFO”) 
This measure is FFO adjusted to subtract (1) preferred share dividends, (2) income or loss attributable to noncontrolling interests through ownership of preferred units in COPT Defense Properties, L.P. (the “Operating Partnership”) or interests in other consolidated entities not owned by us, (3) depreciation and amortization allocable to noncontrolling interests in other consolidated entities, (4) Basic FFO allocable to share-based compensation awards and (5) issuance costs associated with redeemed preferred shares.  With these adjustments, Basic FFO represents FFO available to common shareholders and holders of common units in the Operating Partnership (“common units”).  Common units are substantially similar to our common shares of beneficial interest (“common shares”) and are exchangeable into common shares, subject to certain conditions.  We believe that Basic FFO is useful to investors due to the close correlation of common units to common shares.  We believe that net income or loss is the most directly comparable GAAP measure to this non-GAAP measure.

Cash net operating income (“Cash NOI”) 
Defined as NOI from real estate operations adjusted to eliminate the effects of: straight-line rental adjustments, amortization of tenant incentives, amortization of intangibles and other assets included in FFO and NOI, lease termination fees from tenants to terminate their lease obligations prior to the end of the agreed upon lease terms and rental revenue recognized under GAAP resulting from landlord assets and lease incentives funded by tenants.  Cash NOI also includes adjustments to NOI from real estate operations for the effects of the items noted above pertaining to unconsolidated real estate JVs that were allocable to our ownership interest in the JVs. Under GAAP, rental revenue is recognized evenly over the term of tenant leases (through straight-line rental adjustments and amortization of tenant incentives), which, given the long term nature of our leases, does not align with the economics of when tenant payments are due to us under the arrangements.  Also under GAAP, when a property is acquired, we allocate the acquisition to certain intangible components, which are then amortized into NOI over their estimated lives, even though the resulting revenue adjustments are not reflective of our lease economics.  In addition, revenue from lease termination fees and tenant-
39

COPT Defense Properties
Definitions
funded landlord improvements, absent an adjustment from us, would result in large one-time lump sum amounts in Cash NOI that we do not believe are reflective of a property’s long-term value.  We believe that Cash NOI is a useful supplemental measure of operating performance for a REIT’s operating real estate because it makes adjustments to NOI for the above stated items to be more reflective of the economics of when tenant payments are due to us under our leases and the value of our properties.  As is the case with NOI, the measure is useful in our opinion in evaluating and comparing the performance of reportable segments, Same Property groupings and individual properties.  We believe that net income or loss is the most directly comparable GAAP measure to this non-GAAP measure.

CDP’s share of NOI from unconsolidated real estate JVs
Represents the net of revenues and property operating expenses of real estate operations owned through unconsolidated JVs that are allocable to CDP’s ownership interest. This measure is included in the computation of NOI, our segment performance measure, as discussed below.

Diluted adjusted funds from operations available to common share and common unit holders (“Diluted AFFO”) 
Defined as Diluted FFO, as adjusted for comparability, adjusted for the following: (1) the elimination of the effect of (a) noncash rental revenues and property operating expenses (comprised of straight-line rental adjustments, which includes the amortization of recurring tenant incentives, and amortization of acquisition intangibles included in FFO and NOI, both of which are described under “Cash NOI” above), (b) share-based compensation, net of amounts capitalized, (c) amortization of deferred financing costs, (d) amortization of debt discounts and premiums and (e) amortization of settlements of debt hedges; and (2) replacement capital expenditures (defined below).  Diluted AFFO also includes adjustments to Diluted FFO, as adjusted for comparability for the effects of the items noted above pertaining to unconsolidated real estate JVs that were allocable to our ownership interest in the JVs. We believe that Diluted AFFO is a useful supplemental measure of operating performance for a REIT because it incorporates adjustments for: certain revenue and expenses that are not associated with cash to or from us during the period; and certain capital expenditures for operating properties incurred during the period that do require cash outlays.  We believe that net income or loss is the most directly comparable GAAP measure to this non-GAAP measure.

Diluted FFO available to common share and common unit holders (“Diluted FFO”) 
Diluted FFO is Basic FFO adjusted to add back any changes in Basic FFO that would result from the assumed conversion of securities that are convertible or exchangeable into common shares.  The computation of Diluted FFO assumes the conversion of common units but does not assume the conversion of other securities that are convertible into common shares if the conversion of those securities would increase Diluted FFO per share in a given period.  We believe that Diluted FFO (which includes discontinued operations) is useful to investors because it is the numerator used to compute Diluted FFO per share, discussed below.  We believe that net income or loss is the most directly comparable GAAP measure to this non-GAAP measure.

Diluted FFO available to common share and common unit holders, as adjusted for comparability (“Diluted FFO, as adjusted for comparability”)
Defined as Diluted FFO or FFO adjusted to exclude: operating property acquisition costs; gain or loss on early extinguishment of debt; FFO associated with properties that secured non-recourse debt on which we defaulted and, subsequently, extinguished via conveyance of such properties (including property NOI, interest expense and gains on debt extinguishment); loss on interest rate derivatives; executive transition costs associated with named executive officers; and, for periods prior to 10/1/22, demolition costs on redevelopment and nonrecurring improvements and executive transition costs associated with other senior management team members.  Diluted FFO, as adjusted for comparability also includes adjustments to Diluted FFO for the effects of the items noted above pertaining to unconsolidated real estate JVs that were allocable to our ownership interest in the JVs. We believe this to be a useful supplemental measure alongside Diluted FFO as it excludes gains and losses from certain investing and financing activities and certain other items that we believe are not closely correlated to (or associated with) our operating performance. We believe that net income or loss is the most directly comparable GAAP measure to this non-GAAP measure.
 
Diluted FFO per share 
Diluted FFO per share is (1) Diluted FFO divided by (2) the sum of the (a) weighted average common shares outstanding during a period, (b) weighted average common units outstanding during a period and (c) weighted average number of potential additional common shares that would have been outstanding during a period if other securities that are convertible or exchangeable into common shares were converted or exchanged.  The computation of Diluted FFO per share assumes the conversion of common units but does not assume the conversion of other securities that are convertible into common shares if the conversion of those securities would increase Diluted FFO per share in a given period.  We believe that Diluted FFO per share is useful to investors because it provides investors with a further context for evaluating our FFO results in the same manner that investors use earnings per share (“EPS”) in evaluating net income or loss available to common shareholders.  We believe that diluted EPS is the most directly comparable GAAP measure to this non-GAAP measure.

Diluted FFO per share, as adjusted for comparability 
Defined as (1) Diluted FFO available to common share and common unit holders, as adjusted for comparability divided by (2) the sum of the (a) weighted average common shares outstanding during a period, (b) weighted average common units outstanding during a period and (c) weighted average number of potential additional common shares that would have been outstanding during a period if other securities that are convertible or exchangeable into common shares were converted or exchanged.  The computation of this measure assumes the conversion of common units but does not assume the conversion of other securities that are convertible into common shares if the conversion of those securities would increase the per share measure in a given period.  We believe this to be a useful supplemental measure alongside Diluted FFO per share as it excludes gains and losses from investing and financing activities and certain other items that we
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COPT Defense Properties
Definitions
believe are not closely correlated to (or associated with) our operating performance. We believe that diluted EPS is the most directly comparable GAAP measure to this non-GAAP measure.
 
Earnings before interest, income taxes, depreciation and amortization for real estate (“EBITDAre”) 
Defined as net income or loss adjusted for the effects of interest expense, depreciation and amortization, gains on sales and impairment losses of real estate and investments in unconsolidated real estate JVs, and income taxes. EBITDAre also includes adjustments to net income or loss for the effects of the items noted above pertaining to unconsolidated real estate JVs that were allocable to our ownership interest in the JVs. While EBITDA (earnings before interest, taxes, depreciation and amortization) is a universally-defined supplemental measure, EBITDAre incorporates additional adjustments for gains and losses from investing activities related to our investments in operating properties. We believe that EBITDAre is a useful supplemental measure for assessing our un-levered performance. We believe that net income or loss is the most directly comparable GAAP measure to this non-GAAP measure.

Funds from operations (“FFO” or “FFO per Nareit”)
Defined as net income or loss computed using GAAP, excluding gains on sales and impairment losses of real estate and investments in unconsolidated real estate JVs (net of associated income tax) and real estate-related depreciation and amortization. FFO also includes adjustments to net income or loss for the effects of the items noted above pertaining to unconsolidated real estate JVs that were allocable to our ownership interest in the JVs. We believe that we use the National Association of Real Estate Investment Trust’s (“Nareit”) definition of FFO, although others may interpret the definition differently and, accordingly, our presentation of FFO may differ from those of other REITs.  We believe that FFO is useful to management and investors as a supplemental measure of operating performance because, by excluding gains on sales and impairment losses of real estate (net of associated income tax) and real estate-related depreciation and amortization, FFO can help one compare our operating performance between periods.  We believe that net income or loss is the most directly comparable GAAP measure to this non-GAAP measure.

Gross debt
Defined as debt reported on our consolidated balance sheet adjusted to exclude net discounts and premiums and deferred financing costs, as further adjusted to include outstanding debt of unconsolidated real estate JVs that were allocable to our ownership interest in the JVs. We believe that this measure is useful to investors as it represents our total outstanding debt, including our share of unconsolidated joint venture debt. We believe that debt reported on our consolidated balance sheet is the most directly comparable GAAP measure to this non-GAAP measure.

In-place adjusted EBITDA
Defined as Adjusted EBITDA, as further adjusted for: (1) certain events occurring in a three month period to reflect Adjusted EBITDA as if the events occurred at the beginning
of such period, including: (a) properties acquired, placed in service or expanded upon subsequent to the commencement of a period made in order to reflect a full period of ownership/operations; (b) properties removed from service or in which we disposed of interests; (c) significant mid-period occupancy changes associated with properties recently placed in service as if such occupancy changes occurred at the beginning of such period; and (2) adjustments to deferred rental revenue associated with changes in our assessment of collectability. The measure also includes adjustments for the effects of the items noted above pertaining to unconsolidated real estate JVs that were allocable to our ownership interest in the JVs. We believe that the pro forma adjustments described above are consistent with the requirements for preparation of amounts presented on a pro forma basis in accordance with Article 11 of Regulation S-X. We believe that in-place adjusted EBITDA is a useful supplemental measure of performance for assessing our un-levered performance and ability to repay outstanding debt from operations, as further adjusted for changes in operating properties subsequent to the commencement of a quarter and for the other items noted above that we believe are not closely correlated with our operating performance and are not relevant to an investor’s evaluation of our ability to repay debt.  We believe that net income or loss is the most directly comparable GAAP measure to this non-GAAP measure.

Net debt
Defined as Gross debt (total outstanding debt reported per our balance sheet as adjusted to exclude net discounts and premiums and deferred financing costs), as adjusted to subtract cash and cash equivalents as of the end of the period. The measure also includes adjustments to Gross debt for the effects of the items noted above pertaining to unconsolidated real estate JVs that were allocable to our ownership interest in the JVs. We use net debt for purposes of calculating our net debt to adjusted book, which we believe is a useful supplemental measure for investors to use in further understanding the relationship of our outstanding debt to our assets available to service such debt. We believe that debt reported on our consolidated balance sheet is the most directly comparable GAAP measure to this non-GAAP measure.

Net debt adjusted for fully-leased development
Defined as Net debt less costs incurred on properties under development that were 100% leased. We believe that this supplemental measure is useful in providing investors the impact to our debt of fully leased properties under development that are not yet contributing to our adjusted EBITDA. We believe that debt reported on our consolidated balance sheet is the most directly comparable GAAP measure to this non-GAAP measure.

Net debt to Adjusted book
Defined as Net debt divided by Adjusted book (defined above).

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COPT Defense Properties
Definitions
Net debt to in-place adjusted EBITDA ratio and Net debt adjusted for fully-leased development to in-place adjusted EBITDA ratio
Defined as Net debt or Net debt adjusted for fully-leased development divided by in-place adjusted EBITDA (defined above) for the three month period that is annualized by multiplying by four.

Net operating income from real estate operations (“NOI”)
NOI, which is our segment performance measure, includes: consolidated real estate revenues from continuing and discontinued operations; consolidated property operating expenses from continuing and discontinued operations; and the net of revenues and property operating expenses of real estate operations owned through unconsolidated real estate JVs that are allocable to CDP’s ownership interest in the JVs. We believe that NOI is an important supplemental measure of operating performance for a REIT’s operating real estate because it provides a measure of the core real estate operations that is unaffected by depreciation, amortization, financing and general, administrative and leasing expenses; we believe this measure is particularly useful in evaluating the performance of reportable segments, Same Property groupings and individual properties.  We believe that net income or loss is the most directly comparable GAAP measure to this non-GAAP measure.

NOI fixed charge coverage ratio and Adjusted EBITDA fixed charge coverage ratio 
These measures divide either NOI from real estate operations or Adjusted EBITDA by the sum of (1) interest expense (excluding amortization of deferred financing costs and amortization of debt discounts and premiums, net of amounts capitalized, and gains or losses on interest rate derivatives), (2) scheduled principal amortization on mortgage loans, (3) capitalized interest, (4) dividends on preferred shares and (5) distributions on preferred units in the Operating Partnership not owned by us.
 
NOI interest coverage ratio and Adjusted EBITDA interest coverage ratio 
These measures divide either NOI from real estate operations or Adjusted EBITDA by interest expense (excluding amortization of deferred financing costs and amortization of debt discounts and premiums, net of amounts capitalized, gains on losses on interest rate derivatives and interest expense on debt in default to be extinguished via conveyance of properties).

Payout ratios based on: Diluted FFO; Diluted FFO, as adjusted for comparability; and Diluted AFFO 
These payout ratios are defined as (1) the sum of dividends on common and deferred shares and distributions to holders of interests in the Operating Partnership to the extent they are dilutive in the respective FFO per share numerators divided by (2) the respective non-GAAP measures.

Pro forma net debt, pro forma net debt adjusted for fully-leased development, pro forma in-place adjusted EBITDA and associated ratios
These measures and the ratios in which they are used adjust for the effect of noted dispositions of interests in properties that occurred subsequent to the end of reporting periods and before our release of financial results for such periods. The adjustments remove Adjusted EBITDA from real estate operations associated with the disposed interests in properties and adjust our net debt measures for resulting proceeds available for debt pay downs to reflect these measures and ratios as if such events occurring subsequent to a three month reporting period occurred at the beginning of such reporting period. We believe that these adjustments are consistent with the requirements for preparation of amounts presented on a pro forma basis in accordance with Article 11 of Regulation S-X. We believe that these further adjusted versions of these measures/ratios are useful in presenting the effect of the dispositions on our un-levered performance and ability to repay outstanding debt from operations.  We believe that debt reported on our consolidated balance sheet is the most directly comparable GAAP measure to pro forma net debt and pro forma net debt adjusted for fully-leased development and that net income or loss is the most directly comparable GAAP measure to pro forma in-place adjusted EBITDA.

Replacement capital expenditures 
Replacement capital expenditures are defined as tenant improvements and incentives, building improvements and leasing costs incurred during the period for operating properties that are not (1) items contemplated prior to the acquisition of a property, (2) improvements associated with the expansion of a building or its improvements, (3) renovations to a building which change the underlying classification of the building (for example, from industrial to office or Class C office to Class B office), (4) capital improvements that represent the addition of something new to the property rather than the replacement of something (for example, the addition of a new heating and air conditioning unit that is not replacing one that was previously there) or (5) replacements of significant components of a building after the building has reached the end of its original useful life. Replacement capital expenditures excludes expenditures of operating properties included in disposition plans during the period that were already sold or are held for future disposition. For cash tenant incentives not due to the tenant for a period exceeding three months past the date on which such incentives were incurred, we recognize such incentives as replacement capital expenditures in the periods such incentives are due to the tenant. Replacement capital expenditures, which is included in the computation of Diluted AFFO, is intended to represent non-transformative capital expenditures of existing properties held for long-term investment. We believe that the excluded expenditures are more closely associated with our investing activities than the performance of our operating portfolio.

Same Property NOI from real estate operations and Same Property cash NOI
from real estate operations Defined as NOI, or Cash NOI, from real estate operations of Same Property groupings.  We believe that these are important supplemental measures of Same Property operating performance for the same reasons discussed above for NOI from real estate operations and Cash NOI from real estate operations.
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COPT Defense Properties
Definitions
Other Definitions
 
Acquisition Costs — Transaction costs expensed in connection with executed or anticipated acquisitions of operating properties.
 
Annualized Rental Revenue (“ARR”) — The monthly contractual base rent as of the reporting date (ignoring free rent then in effect and rent associated with tenant funded landlord assets) multiplied by 12, plus the estimated annualized expense reimbursements under existing leases for occupied space. With regard to properties owned through unconsolidated real estate JVs, we include the portion of Annualized Rental Revenue allocable to CDP’s ownership interest. We consider ARR to be a useful measure for analyzing revenue sources because, since it is point-in-time based, it does not contain increases and decreases in revenue associated with periods in which lease terms were not in effect; historical revenue under GAAP does contain such fluctuations. We find the measure particularly useful for leasing, tenant, segment and industry analysis.

Average Escalations — Leasing statistic used to report average increase in rental rates over lease terms for leases with a term of greater than one-year.

Cash Rent — Includes monthly contractual base rent (ignoring rent abatements and rent associated with tenant funded landlord assets) multiplied by 12, plus estimated annualized expense reimbursements (as of lease commencement for new or renewed leases or as of lease expiration for expiring leases). We believe that cash rent is a useful measure for evaluating the rental rates at the time rent payments commence for our leasing activity, including changes in such rates relative to rates that may have been previously in place.

Committed cost per square foot — Includes tenant improvement allowance (excluding tenant funded landlord assets), leasing commissions and estimated turn key costs and excludes lease incentives. We believe this is a useful measure for evaluating our costs associated with obtaining new leases.

Debt to net income ratio — Represents debt reported on our consolidated balance sheet divided by net income for the three month period that is annualized by multiplying by four. We do not present this ratio for periods with a net loss.

Defense/IT Portfolio — Represents properties in locations proximate to, or sometimes containing, key U.S. Government (“USG”) defense installations and missions.

Development Properties — Properties under, or contractually committed for, development.

Equity Market Capitalization — Defined as the sum of: (1) the product of the closing price of our common shares on the NYSE and the sum of (a) common shares outstanding and (b) common units outstanding; and (2) the liquidation value of preferred shares and preferred units in our operating partnership.

First Generation Space — Newly-developed or redeveloped space that has never been occupied.

Net income to interest expense ratio — Represents net income reported on our consolidated statements of operations divided by interest expense. We do not present this ratio for periods with a net loss.

Net income payout ratio — defined as (1) the sum of dividends on common and deferred shares and distributions to holders of interests in the Operating Partnership divided by (2) net income. We do not present this ratio for periods with a net loss.

Operational Space — The portion of a property in operations (excludes portion under development or redevelopment).

Redevelopment Properties — Properties previously in operations on which activities to substantially renovate such properties were underway or approved.

Same Property — Operating properties stably owned and 100% operational since at least 1/1/22.

Second Generation Space — Space leased that has been previously occupied.

Straight-line Rent — Includes annual minimum base rents, net of abatements and lease incentives and excluding rent associated with tenant funded landlord assets, on a straight-line basis over the term of the lease, and estimated annual expense reimbursements (as of lease commencement for new or renewed leases or as of lease expiration for expiring leases). We believe that straight-line rent is a useful measures for evaluating the rental rates over the related lease terms for our leasing activity, including changes in such rates relative to rates that may have been previously in place.

Total Market Capitalization — Defined as the sum of: (1) consolidated outstanding debt, excluding discounts, premiums and deferred financing costs; (2) the product of the closing price of our common shares on the NYSE and the sum of (a) common shares outstanding and (b) common units outstanding; and (3) the liquidation value of preferred shares and preferred units in our operating partnership.

Total Portfolio — Operating properties, including ones owned through unconsolidated real estate JVs.

Vacancy leasing activity ratio — Square footage associated with prospective tenants for vacant square feet in service divided by total vacant square feet in service.

Vacant space leased — Includes acquired first generation space, vacated second generation space and leases executed on developed and redeveloped space previously placed in service.
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NEWS RELEASE
IR Contacts:
Venkat Kommineni, CFAMichelle Layne
443.285.5587443.285.5452
venkat.kommineni@copt.commichelle.layne@copt.com


COPT Defense Reports Third Quarter 2023 Results
_______________________________________________________________

EPS of ($1.94) for 3Q23;
FFO per Share, as Adjusted for Comparability, of $0.60

Maintains Midpoint of 2023 FFO per Share Guidance at $2.40

Defense/IT Portfolio 95.9% Occupied and 97.0% Leased

Same Property Cash NOI Increased 4.5% in 3Q23 and 6.2% Year-to-Date
Raising Same Property Cash NOI Guidance for the Year by 100 Basis Points, to 5.75%-6.25%

Placed 443,000 SF of Developments into Service that are 98% Leased
1.0 million SF of Active Developments are 90% Leased
_______________________________________________________________

Strong Leasing Volume YTD; High Confidence in Achieving 2023 Goals

Total Leasing of 521,000 SF in 3Q23 and 2.2 million SF Year-to-Date

151,000 SF of Vacancy Leasing in 3Q23 and 337,000 SF Year-to-Date
On Track to Achieve Annual Goal of 400,000 SF

Tenant Retention of 82% in 3Q23 and 83% Year-to-Date
On Track to Achieve Annual Goal of 80%-85%

495,000 SF of Development Leasing Year-to-Date
On Track to Achieve Annual Goal of 700,000 SF
_______________________________________________________________


COLUMBIA, MD (BUSINESS WIRE) October 26, 2023 - COPT Defense Properties (“COPT Defense” or the “Company”) (NYSE: CDP) announced results for the third quarter ended September 30, 2023.

Management Comments
Stephen E. Budorick, COPT Defense’s President & Chief Executive Officer, commented, “Our Defense/IT investment strategy, which has concentrated our portfolio near priority U.S. defense installations, continues to produce strong results. Our Defense/IT Portfolio is 97% leased, which is the highest leased rate since we started


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reporting the segment in 2015, supported by growth in defense spending, resulting in continued tenant demand from both our U.S. Government and Defense Contractor tenants.

Our third quarter results were solid, with FFO per share at the midpoint of our guidance range, which led us to narrow the full-year guidance range. We continue to outperform in terms of same property cash NOI growth, which increased 4.5% for 3Q23 over 3Q22, and 6.2% in 2023 YTD over 2022 YTD, which led us to increase our full-year change in same property cash NOI guidance by another 100 basis points. We are highly confident that we will achieve our leasing goals, as we have executed 84% of our vacancy leasing goal and 70% of our development leasing goal, while tenant retention YTD is squarely within our full-year guidance range.

From a balance sheet perspective, our Finance and Capital Markets team once again proved our ability to source low-cost capital to fund our accretive and highly leased development pipeline, as evidenced by our September issuance of $345 million of exchangeable notes due 2028 at 5.25%, which was roughly 200 basis points below where we could have priced 5-year unsecured debt. With this capital raise, and our ability to fund the equity investment in our projects with cash flow from operations after our dividend payments, we forecast we can now fund our anticipated development spend through late 2026. Our investment grade balance sheet is well positioned to navigate the challenging capital markets environment, as we have no variable rate debt exposure and have no significant debt maturity until 2026.

We remain confident in our strategy of allocating capital to investments in our Defense/IT Portfolio that will support continued growth in FFO per share and shareholder value.”

Financial Highlights

3rd Quarter Financial Results:
Diluted earnings per share (“EPS”) was ($1.94) for the quarter ended September 30, 2023, which included a $252.8 million impairment charge for six operating properties in the Other segment and a parcel of land, located in Baltimore, Maryland, Northern Virginia and Washington, D.C., resulting from our quarterly portfolio review.

Diluted funds from operations per share (“FFOPS”), as calculated in accordance with Nareit’s definition, and FFOPS, as adjusted for comparability, were $0.60 for the quarter ended September 30, 2023 compared to $0.58 for the quarter ended September 30, 2022.

Operating Performance Highlights

Operating Portfolio Summary:
At September 30, 2023, the Company’s 21.3 million square foot Defense/IT Portfolio was 95.9% occupied and 97.0% leased.

Same Property Performance:
At September 30, 2023, the Company’s 20.6 million square foot same property portfolio was 93.4% occupied and 94.5% leased.

The Company’s same property cash NOI increased 4.5% for the three months ended September 30, 2023 compared to the same period in 2022.

Leasing:
Total Square Feet Leased: For the quarter ended September 30, 2023, the Company leased 521,000 square feet, including 370,000 square feet of renewals and 151,000 square feet of vacancy leasing. For the nine months ended September 30, 2023, the Company executed 2.2 million square feet of total leasing,


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including 1.4 million square feet of renewals, 337,000 square feet of vacancy leasing, and 495,000 square feet in development projects.

Tenant Retention Rates: During the quarter and nine months ended September 30, 2023, the Company renewed 82.0% and 82.5%, respectively, of expiring square feet.

Rent Spreads & Average Escalations on Renewing Leases: For the quarter and nine months ended September 30, 2023, straight-line rents on renewals increased 9.3% and 7.5%, respectively, and cash rents on renewed space increased 1.7% and 1.2%, respectively. For the same time periods, annual escalations on renewing leases averaged 2.7% and 2.6%, respectively.

Lease Terms: In the quarter ended September 30, 2023, lease terms averaged 4.2 years on renewing leases and 8.4 years on vacancy leasing. For the nine months ended September 30, 2023, lease terms averaged 4.4 years on renewing leases, 7.9 years on vacancy leasing, and 14.3 years on development leasing.

Investment Activity Highlights
Development Pipeline: The Company’s development pipeline consists of six properties totaling 1.0 million square feet that were 90% leased at September 30, 2023. These projects represent a total estimated investment of $337.0 million, of which $150.2 million has been spent.

Balance Sheet and Capital Transaction Highlights
On September 12, 2023, the Company issued $345 million of 5.25% Exchangeable Senior Notes due 2028. The Company used net proceeds from this issuance to pay down a portion of its Revolving Credit Facility, and to pre-fund future development investments, which resulted in a portion of the net proceeds being invested in short-term interest-bearing money market accounts pending such use. These notes are due in 2028 unless earlier exchanged, redeemed or repurchased only in the event of certain circumstances and during certain periods defined under the terms of the notes. Upon exchange of the notes, the principal amount of notes exchanged is payable in cash, with the remainder of the exchange obligation, if any, payable in cash, common shares or a combination thereof at the Company’s election.

For the quarter ended September 30, 2023, the Company’s adjusted EBITDA fixed charge coverage ratio was 4.6x.

At September 30, 2023, the Company’s net debt to in-place adjusted EBITDA ratio was 6.2x and its net debt adjusted for fully-leased development to in-place adjusted EBITDA ratio was 5.9x.

At September 30, 2023, and including the effect of interest rate swaps, the Company’s weighted average effective interest rate on its consolidated debt portfolio was 3.4% with a weighted average maturity of 5.9 years and, 100.0% of the Company’s debt was subject to fixed interest rates.

Associated Supplemental Presentation
Prior to the call, the Company will post a slide presentation to accompany management’s prepared remarks for its third quarter 2023 conference call; the presentation can be viewed and downloaded from the ‘Financial Info – Financial Results’ section of COPT Defense’s Investors website: https://investors.copt.com/financial-information/financial-results

2023 Guidance
Management is revising its full-year guidance for diluted EPS and narrowing its full-year guidance for diluted FFOPS, per Nareit and as adjusted for comparability, from the prior range of $1.49-$1.53, and $2.38-$2.42,


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respectively, to new ranges of ($0.71)-($0.69), and $2.39-$2.41, respectively. Management is establishing fourth quarter guidance for diluted EPS and diluted FFOPS per Nareit and as adjusted for comparability at $0.27-$0.29 and $0.60-$0.62, respectively. Reconciliations of projected diluted EPS to projected diluted FFOPS, in accordance with Nareit and as adjusted for comparability are as follows:
Reconciliation of Diluted EPS to FFOPS, per Nareit,
and As Adjusted for Comparability
Quarter Ending December 31, 2023Year Ending December 31, 2023
LowHighLowHigh
Diluted EPS$0.27 $0.29 $(0.71)$(0.69)
Real estate-related depreciation and amortization0.33 0.33 1.32 1.32 
Impairment losses— — 2.21 2.21 
Gain on sales of real estate— — (0.43)(0.43)
Diluted FFOPS, Nareit definition and as adjusted for comparability$0.60 $0.62 $2.39 $2.41 

Conference Call Information
Management will discuss third quarter 2023 results on its conference call tomorrow at 12:00 p.m. Eastern Time, details of which are listed below:

Conference Call Date: Friday, October 27, 2023
Time: 12:00 p.m. Eastern Time

Participants must register for the conference call at the link below to receive the dial-in number and personal pin. Registering only takes a few moments and provides direct access to the conference call without waiting for an operator. You may register at any time, including up to and after the call start time:
https://register.vevent.com/register/BI3aa228e2cc714d1893a176fa18b0ded0

The conference call will also be available via live webcast in the ‘News & Events – IR Calendar’ section of COPT Defense’s Investors website: https://investors.copt.com/news-events/ir-calendar

Replay Information
A replay of the conference call will be immediately available via webcast only on COPT Defense’s Investors website and will be maintained on the website for approximately 90 days after the conference call.

Definitions
For definitions of certain terms used in this press release, please refer to the information furnished in the Company’s Supplemental Information Package furnished on a Form 8-K which can be found on its website (www.copt.com). Reconciliations of non-GAAP measures to the most directly comparable GAAP measures are included in the attached tables.

About COPT Defense
COPT Defense, an S&P MidCap 400 Company, is a self-managed REIT focused on owning, operating and developing properties in locations proximate to, or sometimes containing, key U.S. Government (“USG”) defense installations and missions (referred to as its Defense/IT Portfolio). The Company’s tenants include the USG and their defense contractors, who are primarily engaged in priority national security activities, and who generally require mission-critical and high security property enhancements. In September 2023, the Company changed its name from Corporate Office Properties Trust to COPT Defense Properties to better describe its investment strategy’s focus on locations serving U.S. priority defense activities. The ticker symbol under which the Company’s common shares are publicly traded on the New York Stock Exchange changed from “OFC” to “CDP.” As of September 30, 2023, the Company’s Defense/IT Portfolio of 188 properties, including 24 owned through unconsolidated joint ventures, encompassed 21.3 million square feet and was 97.0% leased.


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Forward-Looking Information
This press release may contain “forward-looking” statements, as defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, that are based on the Company’s current expectations, estimates and projections about future events and financial trends affecting the Company. Forward-looking statements can be identified by the use of words such as “may,” “will,” “should,” “could,” “believe,” “anticipate,” “expect,” “estimate,” “plan” or other comparable terminology. Forward-looking statements are inherently subject to risks and uncertainties, many of which the Company cannot predict with accuracy and some of which the Company might not even anticipate. Although the Company believes that the expectations, estimates and projections reflected in such forward-looking statements are based on reasonable assumptions at the time made, the Company can give no assurance that these expectations, estimates and projections will be achieved. Future events and actual results may differ materially from those discussed in the forward-looking statements and the Company undertakes no obligation to update or supplement any forward-looking statements.

The areas of risk that may affect these expectations, estimates and projections include, but are not limited to, those risks described in Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.


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COPT Defense Properties
Summary Financial Data
(unaudited)
(dollars and shares in thousands, except per share data)
 For the Three Months Ended September 30,For the Nine Months Ended September 30,
 2023202220232022
Revenues  
Lease revenue$155,268 $146,481 $459,510 $430,147 
Other property revenue1,339 1,206 3,731 3,066 
Construction contract and other service revenues11,949 34,813 42,012 130,570 
Total revenues168,556 182,500 505,253 563,783 
Operating expenses  
Property operating expenses61,788 57,663 182,808 168,960 
Depreciation and amortization associated with real estate operations37,620 35,247 112,215 104,323 
Construction contract and other service expenses11,493 33,555 40,249 126,509 
Impairment losses252,797 — 252,797 — 
General and administrative expenses7,582 6,558 22,865 19,695 
Leasing expenses2,280 2,340 6,624 6,102 
Business development expenses and land carry costs714 552 1,935 2,036 
Total operating expenses374,274 135,915 619,493 427,625 
Interest expense(17,798)(15,123)(50,759)(44,355)
Interest and other income, net2,529 597 6,928 4,399 
Gain on sales of real estate— 16 49,392 12 
Loss on early extinguishment of debt— — — (342)
(Loss) income from continuing operations before equity in (loss) income of unconsolidated entities and income taxes(220,987)32,075 (108,679)95,872 
Equity in (loss) income of unconsolidated entities(68)308 (21)1,514 
Income tax expense(152)(67)(467)(224)
(Loss) income from continuing operations(221,207)32,316 (109,167)97,162 
Discontinued operations— — — 29,573 
Net (loss) income(221,207)32,316 (109,167)126,735 
Net loss (income) attributable to noncontrolling interests:  
Common units in the Operating Partnership (“OP”)3,691 (476)1,882 (1,828)
Other consolidated entities1,329 (919)164 (2,357)
Net (loss) income attributable to common shareholders$(216,187)$30,921 $(107,121)$122,550 
Earnings per share (“EPS”) computation:  
Numerator for diluted EPS:  
Net (loss) income attributable to common shareholders$(216,187)$30,921 $(107,121)$122,550 
Amount allocable to share-based compensation awards(992)(75)(1,093)(334)
Redeemable noncontrolling interests— (40)— (109)
Numerator for diluted EPS$(217,179)$30,806 $(108,214)$122,107 
Denominator:  
Weighted average common shares - basic112,196 112,093 112,170 112,066 
Dilutive effect of share-based compensation awards— 433 — 429 
Dilutive effect of redeemable noncontrolling interests— 105 — 121 
Weighted average common shares - diluted112,196 112,631 112,170 112,616 
Diluted EPS$(1.94)$0.27 $(0.96)$1.08 
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COPT Defense Properties
Summary Financial Data
(unaudited)
(in thousands, except per share data)
 For the Three Months Ended September 30,For the Nine Months Ended September 30,
 2023202220232022
Net (loss) income $(221,207)$32,316 $(109,167)$126,735 
Real estate-related depreciation and amortization37,620 35,247 112,215 104,323 
Impairment losses on real estate252,797 — 252,797 — 
Gain on sales of real estate from continuing and discontinued operations— (16)(49,392)(28,576)
Depreciation and amortization on unconsolidated real estate JVs806 524 2,412 1,575 
Funds from operations (“FFO”)70,016 68,071 208,865 204,057 
FFO allocable to other noncontrolling interests(1,059)(1,348)(3,006)(3,568)
Basic FFO allocable to share-based compensation awards(481)(354)(1,427)(1,073)
Basic FFO available to common share and common unit holders (“Basic FFO”)68,476 66,369 204,432 199,416 
Redeemable noncontrolling interests— (5)(58)(7)
Diluted FFO adjustments allocable to share-based compensation awards36 27 112 81 
Diluted FFO available to common share and common unit holders (“Diluted FFO”)68,512 66,391 204,486 199,490 
Loss on early extinguishment of debt— — — 342 
Executive transition costs82 206 330 343 
Diluted FFO comparability adjustments allocable to share-based compensation awards(1)(2)(3)(4)
Diluted FFO available to common share and common unit holders, as adjusted for comparability68,593 66,595 204,813 200,171 
Straight line rent adjustments and lease incentive amortization12,882 605 6,205 (5,782)
Amortization of intangibles and other assets included in net operating income (“NOI”)26 50 24 (273)
Share-based compensation, net of amounts capitalized2,280 2,188 6,226 6,453 
Amortization of deferred financing costs639 540 1,899 1,678 
Amortization of net debt discounts, net of amounts capitalized750 612 1,990 1,825 
Replacement capital expenditures(21,122)(17,528)(71,996)(52,603)
Other74 377 (420)822 
Diluted adjusted funds from operations available to common share and common unit holders (“Diluted AFFO”)$64,122 $53,439 $148,741 $152,291 
Diluted FFO per share$0.60 $0.58 $1.79 $1.75 
Diluted FFO per share, as adjusted for comparability$0.60 $0.58 $1.79 $1.75 
Dividends/distributions per common share/unit$0.285 $0.275 $0.855 $0.825 

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COPT Defense Properties
Summary Financial Data
(unaudited)
(Dollars and shares in thousands, except per share data)
September 30,
2023
December 31,
2022
Balance Sheet Data  
Properties, net of accumulated depreciation$3,468,197 $3,556,398 
Total assets$4,239,257 $4,257,275 
Debt per balance sheet$2,415,783 $2,231,794 
Total liabilities$2,691,562 $2,509,527 
Redeemable noncontrolling interests$21,822 $26,293 
Total equity$1,525,873 $1,721,455 
Debt to assets57.0 %52.4 %
Net debt to adjusted book40.5 %39.8 %
Defense/IT Portfolio Data (as of period end)  
Number of operating properties188 186 
Total operational square feet (in thousands)21,339 20,869 
% Occupied95.9 %94.1 %
% Leased97.0 %96.7 %
For the Three Months Ended September 30,For the Nine Months Ended September 30,
2023202220232022
GAAP    
Payout ratio:
Net incomeN/A97.1 %N/A74.3 %
Debt ratios:
Net income to interest expense ratioN/A2.1 N/A2.9 
Debt to net income ratioN/A17.6 N/AN/A
Non-GAAP
Payout ratios:
Diluted FFO47.3 %47.1 %47.6 %47.0 %
Diluted FFO, as adjusted for comparability47.3 %46.9 %47.5 %46.8 %
Diluted AFFO50.6 %58.5 %65.4 %61.6 %
Debt ratios:
Adjusted EBITDA fixed charge coverage ratio4.6 5.1 4.9 5.2 
Net debt to in-place adjusted EBITDA ratio6.2 6.7 N/AN/A
Net debt adj. for fully-leased development to in-place adj. EBITDA ratio5.9 5.9 N/AN/A
Reconciliation of denominators for per share measures 
Denominator for diluted EPS112,196 112,631 112,170 112,616 
Weighted average common units1,520 1,477 1,508 1,446 
Dilutive effect of additional share-based compensation awards429 — 422 — 
Redeemable noncontrolling interests— — 51 — 
Denominator for diluted FFO per share and as adjusted for comparability114,145 114,108 114,151 114,062 



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COPT Defense Properties
Summary Financial Data
(unaudited)
(in thousands)
For the Three Months Ended September 30,For the Nine Months Ended September 30,
 2023202220232022
Numerators for Payout Ratios
Dividends on unrestricted common and deferred shares$31,996 $30,844 $95,980 $92,523 
Distributions on unrestricted common units432 406 1,295 1,217 
Dividends and distributions on restricted shares and units200 140 619 433 
Total dividends and distributions for GAAP payout ratio32,628 31,390 97,894 94,173 
Dividends and distributions on antidilutive shares and units(202)(127)(623)(395)
Dividends and distributions for non-GAAP payout ratios$32,426 $31,263 $97,271 $93,778 
Reconciliation of net (loss) income to earnings before interest, income taxes, depreciation and amortization for real estate (“EBITDAre”), adjusted EBITDA and in-place adjusted EBITDA    
Net (loss) income $(221,207)$32,316 $(109,167)$126,735 
Interest expense17,798 15,123 50,759 44,355 
Income tax expense152 67 467 224 
Real estate-related depreciation and amortization37,620 35,247 112,215 104,323 
Other depreciation and amortization615 602 1,826 1,761 
Impairment losses on real estate252,797 — 252,797 — 
Gain on sales of real estate from continuing and discontinued operations— (16)(49,392)(28,576)
Adjustments from unconsolidated real estate JVs1,743 762 5,006 2,280 
EBITDAre89,518 84,101 264,511 251,102 
Credit loss expense372 1,693 677 1,602 
Business development expenses313 386 948 1,097 
Executive transition costs82 206 636 343 
Loss on early extinguishment of debt— — — 342 
Net gain on other investments(25)— (25)(564)
Adjusted EBITDA90,260 86,386 $266,747 $253,922 
Pro forma NOI adjustment for property changes within period1,647 — 
Change in collectability of deferred rental revenue— 13 
In-place adjusted EBITDA$91,907 $86,399 
Reconciliations of tenant improvements and incentives, building improvements and leasing costs for operating properties to replacement capital expenditures
Tenant improvements and incentives$14,457 $8,848 $67,062 $29,513 
Building improvements6,307 7,477 11,214 21,060 
Leasing costs1,902 3,073 7,194 7,091 
Net (exclusions from) additions to tenant improvements and incentives(813)(57)(11,981)2,225 
Excluded building improvements and leasing costs(731)(1,813)(1,493)(7,286)
Replacement capital expenditures$21,122 $17,528 $71,996 $52,603 
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COPT Defense Properties
Summary Financial Data
(unaudited)
(in thousands)
For the Three Months Ended September 30,For the Nine Months Ended September 30,
 2023202220232022
Reconciliation of interest expense to the denominator for fixed charge coverage-Adjusted EBITDA    
Interest expense$17,798 $15,123 $50,759 $44,355 
Less: Amortization of deferred financing costs(639)(540)(1,899)(1,678)
Less: Amortization of net debt discounts, net of amounts capitalized(750)(612)(1,990)(1,825)
CDP’s share of interest expense of unconsolidated real estate JVs, excluding amortization of deferred financing costs and net debt premium and loss on interest rate derivatives805 236 2,369 700 
Scheduled principal amortization753 851 2,289 2,469 
Capitalized interest1,487 1,969 3,451 4,874 
Denominator for fixed charge coverage-Adjusted EBITDA$19,454 $17,027 $54,979 $48,895 
Reconciliation of net (loss) income to NOI from real estate operations, same property NOI from real estate operations and same property cash NOI from real estate operations
Net (loss) income$(221,207)$32,316 $(109,167)$126,735 
Construction contract and other service revenues(11,949)(34,813)(42,012)(130,570)
Depreciation and other amortization associated with real estate operations37,620 35,247 112,215 104,323 
Construction contract and other service expenses11,493 33,555 40,249 126,509 
Impairment losses252,797 — 252,797 — 
General and administrative expenses7,582 6,558 22,865 19,695 
Leasing expenses2,280 2,340 6,624 6,102 
Business development expenses and land carry costs714 552 1,935 2,036 
Interest expense17,798 15,123 50,759 44,355 
Interest and other income, net(2,529)(597)(6,928)(4,399)
Gain on sales of real estate from continuing operations— (16)(49,392)(12)
Loss on early extinguishment of debt— — — 342 
Equity in loss (income) of unconsolidated entities68 (308)21 (1,514)
Unconsolidated real estate JVs NOI allocable to CDP included in equity in (loss) income of unconsolidated entities1,675 1,072 4,988 3,232 
Income tax expense152 67 467 224 
Discontinued operations— — — (29,573)
Revenues from real estate operations from discontinued operations— — — 1,980 
Property operating expenses from discontinued operations— — — (971)
NOI from real estate operations96,494 91,096 285,421 268,494 
Non-Same Property NOI from real estate operations(9,318)(6,611)(27,539)(18,976)
Same Property NOI from real estate operations87,176 84,485 257,882 249,518 
Straight line rent adjustments and lease incentive amortization15,060 544 17,684 (3,048)
Amortization of acquired above- and below-market rents(120)(97)(415)(713)
Lease termination fees, net(748)(591)(3,028)(1,211)
Tenant funded landlord assets and lease incentives(15,364)(2,026)(17,743)(4,847)
Cash NOI adjustments in unconsolidated real estate JVs(64)(87)(209)(277)
Same Property Cash NOI from real estate operations$85,940 $82,228 $254,171 $239,422 

x



COPT Defense Properties
Summary Financial Data
(unaudited)
(in thousands)
September 30,
2023
December 31,
2022
Reconciliation of total assets to adjusted book  
Total assets$4,239,257 $4,257,275 
Accumulated depreciation1,367,473 1,267,434 
Accumulated depreciation included in assets held for sale— 6,014 
Accumulated amortization of intangibles on property acquisitions and deferred leasing costs228,334 222,779 
CDP’s share of liabilities of unconsolidated real estate JVs60,762 52,404 
CDP’s share of accumulated depreciation and amortization of unconsolidated real estate JVs8,664 6,078 
Less: Property - operating lease liabilities(32,940)(28,759)
Less: Property - finance lease liabilities(420)— 
Less: Cash and cash equivalents(204,238)(12,337)
Less: CDP’s share of cash of unconsolidated real estate JVs(1,031)(456)
Adjusted book$5,665,861 $5,770,432 

September 30,
2023
December 31,
2022
September 30,
2022
Reconciliation of debt to net debt, net debt adjusted for fully-leased development and pro forma net debt adjusted for fully-leased development
Debt per balance sheet$2,415,783 $2,231,794 $2,269,834 
Net discounts and deferred financing costs29,980 23,160 22,984 
CDP’s share of unconsolidated JV gross debt52,511 52,100 26,250 
Gross debt2,498,274 2,307,054 2,319,068 
Less: Cash and cash equivalents(204,238)(12,337)(12,643)
Less: CDP’s share of cash of unconsolidated real estate JVs(1,031)(456)(547)
Net debt2,293,005 2,294,261 2,305,878 
Costs incurred on fully-leased development properties(124,038)(95,972)(275,359)
Net debt adjusted for fully-leased development $2,168,967 $2,198,289 $2,030,519 
Net debt$2,293,005 $2,294,261 $2,305,878 
Pro forma debt adjustments from subsequent event transaction proceedsN/A(189,000)N/A
Pro forma net debt2,293,005 2,105,261 2,305,878 
Costs incurred on fully-leased development properties(124,038)(95,972)(275,359)
Pro forma net debt adjusted for fully-leased development$2,168,967 $2,009,289 $2,030,519 
xi